Hua Xia Bank forecasts 50% 2010 earnings growth

Hua Xia Bank forecasts its 2010 net profit will grow 50 percent year-on-year from US$570.9 million in 2009.

According to a report by China Securities Journal, the bank attributes the growth to lower capital costs, more interest income and the development of its intermediary business.

Hua Xia Bank received approval from the China Securities Regulatory Commission last December to issue 1.86 billion shares at US$1.696 per share to raise US$3.158 billion in a private placement plan. The proceeds raised will be used to replenish the bank's core capital.

Shougang Group, State Grid Asset Management and Deutsche Bank Luxembourg will subscribe to 691 million shares, 653 million shares and 514 million shares, respectively.