MARKET TALK: StanChart Investment In ABC IPO "Expected"

30th Jun 2010 08:09

0709 GMT [Dow Jones] Standard Chartered's (STAN.LN) $500M investment in Agricultural Bank of China's (601288.SH) initial public offering in Hong Kong is very much expected and was previously flagged, says an analyst. The investment follows a recent agreement between the companies to develop new business opportunities and will be financed from Standard Chartered's internal cash resources, says Shore Capital. "ABC is in the top four commercial banks in China, with the largest domestic distribution network and a strong presence in urban and county areas. The ABC IPO is expected to raise between $17B-$21B," adds Shore, maintaining its buy rating on the stock. Standard Chartered -0.2% at 1656p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 30, 2010 03:09 ET (07:09 GMT)