Updates share prices in paragraph 5, Ping An management comments on paragraphs 10, 11
SHANGHAI/HONG KONG, March 27 (Reuters) - Chinese bank stocks climbed in Hong Kong on Friday after Reuters reported that regulators are considering easing shareholder restrictions to broaden options for lenders seeking to raise capital.
The National Financial Regulatory Administration may allow some bank shareholders to become major investors - defined as owning stakes of 5% or more - in up to two additional banks, on top of a current limit of two, people with knowledge of the matter told Reuters on Thursday.
A change in the rule could prompt banks to issue more shares either privately or in the open market.
The regulator did not respond on Thursday to a faxed request for comment on potential rule changes.
Industrial and Commercial Bank of China (ICBC) 1398.HK rose 1.2% in the afternoon trade, with China Construction Bank $(CCB)$ 0939.HK and Postal Savings Bank of China $(PSBC)$ 1658.HK also up more than 1%.
The broader Hang Seng Mainland Banks Index HSMBI added 0.6%.
The potential rule change would have "a positive impact on China banks," Citi said in a client note.
It would accelerate loan growth, drive management incentives to boost earnings and share prices, and prod incremental buying from institutional investors including insurers, Citi said.
Easing restrictions "could broaden the investor base for China banks, and would thus be positive for the sector in general," JPMorgan said in a report.
Ping An Insurance (Group) Co of China 601318.SS, 2318.HK has banks in its portfolio whose shares were performing better than peers on Friday. The insurer's stock rose 0.6% in Hong Kong.
Ping An will "support and look forward to further enhancing our investment returns in the financial industry and other sectors under supportive regulatory policies," Co-CEO Michael Guo said at a post-earnings press conference on Friday.
The insurer will maintain close communication with regulators and will actively study the impact of any new policy once it is clearly rolled out, examining what strategic adjustments should be made to its investments, Guo said.
The conglomerate stepped up investment in banks last year but its controlling stake in Ping An Bank 000001.SZ means it cannot become a major shareholder in other lenders.
Relaxing shareholder rules would "potentially allow Ping An Group to hold more than 5% in addition to its share in its subsidiary, Ping An Bank," JPMorgan said.
JPMorgan said potential beneficiaries could include Ping An portfolio lenders such as ICBC, CCB, PSBC and China Merchants Bank 600036.SS, 3968.HK.
These four banks report earnings later on Friday.
(Reporting by Reuters Staff; Editing by Tom Hogue, Christopher Cushing and Sam Holmes)
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