Rising Sun Enterprise (00393) issued an announcement. The board of directors was authorized to purchase CCB shares and ICBC shares in open market transactions, totaling no more than HK$200 million (excluding stamp duty and related fees).
At an earlier special shareholders' meeting, the board of directors noticed that the shareholders in attendance all actively supported the original purchase authorization. Many shareholders believed that the company should purchase more CCB shares and ICBC shares even more than the limit under the original purchase authorization. At an earlier special shareholders' meeting, there was a positive response to the original purchase authorization, and in particular the reasons described in the “Reasons and Benefits of the Revised Purchase Authorization and Further Purchase Matters” section below, after careful consideration, the Board considered it necessary to revise the maximum amount of each original purchase authorization to HK$400 million (excluding stamp duty and related fees) to carry out further purchase matters. The Board believes that the revised purchase authorization will provide the Board with greater flexibility, seize fleeting opportunities to make attractive investments, and create greater value for shareholders and the company in the long run. The amendments only seek to increase the maximum amount when making various further purchases. The revised purchase authorization will only take effect after shareholders' approval is obtained at the Extraordinary General Meeting of Shareholders. All other terms of the original purchase authorizations will remain unchanged.
CCB and ICBC are both market leaders in banking business. The board of directors has a positive view of China's long-term economic growth. By extension, it is also optimistic about the financial performance and future prospects of China Construction Bank and Industrial and Commercial Bank.