Industrial Bank plans private placement

    INDUSTRIAL Bank Co., which lists shares in Shanghai, plans to raise up to 26 billion yuan (US$3.9 billion) in a private placement of shares to shore up its capital in the face of a slowing domestic economy.

    Industrial Bank plans to issue up to 1.72 billion domestically listed A shares at 15.10 yuan apiece, it said Friday. “Competition among commercial banks in China is intensifying and it is becoming ever so important that banks ensure their capital base is strong,” the lender said. The funds will be used to boost its core tier-1 capital, which is a measure of a bank’s financial health.

    China Life forecasts drop of up to 70% in profit

    CHINA Life Insurance Co., the country’s biggest insurer by market value, said Friday it expected its first-half net profit to fall between 65 and 70 percent, weighed down by a slide in investment income.

    China Life estimated net profit for the first six months fell from 31.5 billion yuan for the same period a year earlier, when it was boosted by bumper sales of life insurance products and gains on investment portfolio. Earlier last week, the country’s insurance regulator said China’s insurance industry saw its first-half earnings slide 54 percent to 105.6 billion yuan (US$15.9 billion).

    Fosun to acquire Brazil investment firm

    CHINA’S Fosun on Saturday signed an agreement to acquire Brazil-based investment management firm Rio Bravo.

    Fosun, which has interests ranging from property to mining, said it will buy the controlling share of privately owned Rio Bravo Investimentos, but did not give a value for the deal. Fosun chairman Guo Guangchang said the deal was an “important milestone for the laying out of Fosun’s globalization strategy of being present in the important emerging economies.”

    Minsheng lead bidder for SocGen’s assets

    CHINA Minsheng Investment Corp. was selected as the lead bidder to buy Societe Generale SA’s London headquarters, according to sources familiar with the sale.

    The bank will lease back the office in the City of London financial district for about four years after which Minsheng Investment plans to refurbish the building, the sources said. Minsheng Investment will pay about 85 million pounds (US$112 million) for the property, about the same price Societe Generale sought when the building was offered for sale before the Brexit referendum.