Clifford Chance

Clifford Chance advises Postal Savings Bank of China and China Construction Bank on the issuance of A-shares totalling RMB235 billion

Global law firm Clifford Chance has advised the Postal Savings Bank of China (PSBC) and China Construction Bank (CCB) on the banks' respective issuances of A-shares. The total amount of proceeds to be raised from the issuances of A-shares shall not exceed RMB235 billion (US$32.4 billion).

• Partner Tianning Xiang advised PSBS on its issuance of A-shares not exceeding RMB130 billion (US$17.9 billion), with the support of counsel Jing Jing and legal specialist Chang Lei. The Ministry of Finance of the People's Republic of China (MOF) plans to subscribe RMB117.58 billion (US$16.2 billion), with PSBC's existing shareholders China Mobile Group subscribing RMB7.85 billion (US$1.08 billion) and China State Shipbuilding Group subscribing RMB4.57 billion (US$629 million).
• Partner and Chair of the firm's China Practice Tim Wang advised CCB on its issuance of A-shares to the MOF not exceeding RMB105 billion (US$14.5 billion), with the support of counsel Jing Jing and legal manager Hu Xinyi.

Tim and Tianning said, “We are honoured to advise PSBC and CCB on their issuances of A-shares, which will support the continued growth and development of China's financial system. Our market-leading capital markets and financial regulatory expertise enabled us to play key roles on these transactions.”

These strategic transactions will replenish the core tier one capital of China’s largest banks, strengthening the country’s high-quality financial sector and driving sustained recovery and growth of the wider economy.