China's social security fund ups stake in BoCom

SHANGHAI Fri Aug 24, 2012 7:13am EDT

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SHANGHAI Aug 24 (Reuters) - China's National Social Security Fund (NSSF) has invested 15 billion yuan ($2.4 billion) in a non-public offering of Bank of Communications' (BoCom) Shanghai and Hong Kong listed shares, increasing its stake in the bank to 13.88 percent from 11.36 percent, the fund said on Friday.

It said it bought 1.9 billion of BoCom Shanghai A-shares at 4.55 yuan per share and 1.4 billion of BoCom Hong Kong H-shares at HK$5.36 per share.

"The NSSF regards well Bank of Communications' investment value and thus has invested in Bank of Communications' A-share and H-share non-public offering," the NSSF said in a statement on its website. (here)

The social security fund, whose annual investment return tumbled to 0.8 percent last year, said the non-public offering will help the bank supplement its core capital and the long term development of its various businesses.

BoCom obtained the green light from Chinese securities regulators earlier this month for a private placement of around $9 billion, aimed at meeting tighter capital requirements.

($1 = 6.3535 Chinese yuan) (Reporting by Melanie Lee; editing by James Jukwey)

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