Bank of China said it has no plans to list its shares on the US markets to avoid incurring 'unnecessary' additional costs related to the Sarbanes-Oxley law.
The Sarbanes-Oxley Act, passed in the US to ensure that corporations meet prescribed accounting and reporting standards, was legislated in reaction to corporate misappropriations and malfeasance.
Chairman Xiao Gang said at the company's A-share online roadshow that the bank would have no legal barriers to listing in the US, but compliance with the Sarbanes-Oxley law would have created unnecessary costs for the bank.
'There would be no legal problems for a listing in the US, but i believe the Sarbanes-Oxley law actually adds unnecessary costs for listed companies.'
Bank of China president Li Lihui also said it expects 13 pct lending growth and 12 pct deposit growth over the next three years.
Today, Bank of China announced it will issue 6.4935 bln A-shares at 3.08 yuan per share in its initial public offering in Shanghai. It raised 9.7 bln usd in its Hong Kong listing last month.
(1 usd = 8.00 yuan)
Source: Forbes
