China Construction Bank now world's largest with $247bln market value

The lender unseated ICBC behind Central Huijin’s unlocking of shares and its plan for a $9.2bln rights issue.

China Construction Bank has become the world's largest bank in term of market value, according to CCB Chairman Guo Shuqing.

"The market value of CCB reached US$ 247 billion" on November 4, Guo said the next day at a finance summit in Beijing sponsored by Caixin Media, "ranking it first in the world."

The increase in stock value lifted state-owned CCB from second place to unseat the previous leader by market value, Industrial and Commercial Bank of China. Guo said the market had reacted to his bank's recent shareholding developments.

"Previously, there was a series of news that may have brought fluctuations in the bank's value, such as the unlocking of shares held by our largest shareholder, Central Huijin Investment, as well as our plan for a rights issue," Guo said. "The positive responses from the market are very encouraging for us."

CCB announced November 1 a plan to raise up to US$ 9.2 billion through a share rights issue within a month to shore up its balance sheet, which weakened after a 2009 lending binge.

View the full story in CaiXin.