Postal Savings Bank Of China Filed For An $8 Billion IPO, Bloomberg Reports - iShares China Large-Cap ETF (ARCA:FXI), iShares MSCI Hong Kong Index Fund (ARCA:EWH)

The Postal Savings Bank of China is the country's second largest bank in terms of retail presence with nearly 40,000 branches across the country. The bank is also owned and operated by the State Post Bureau, China's official government agency that oversees the postal service.

In a somewhat surprising move, the Postal Savings Bank of China is turning to investors, rather than the government, for a liquidity injection. According to Bloomberg, the financial institution filed for an $8 billion IPO.

Bloomberg, citing "people familiar with the matter," reported that the IPO filling came just one week after the lender received approval from the China Banking Regulatory Commission to list 13.96 billion shares of its stock on the Hong Kong stock market.

The Postal Savings Bank's capital adequacy ratio stood at just 9.6 percent at the end of 2014, the last time the figure was reported. The soured-debt ratio is also one of the lowest in China at 0.64 percent.

The bank is in need of a capital boost given the country's lowest rate of growth in 25 years and a volatile stock market.

Reuters reported that the bank is looking to raise between $7 billion $10 billion in an IPO which could value the bank at around $50 billion. The publication added that trading on a public market could occur as soon as September.

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