China's postal bank to get $6 billion in investor commitments for HK IPO: sources

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The bank, China's largest by branches, has secured about $2 billion in commitments from China State Shipbuilding Corp (CSSC), out of a total of about $6 billion expected in cornerstone investments for the IPO, added the sources, who declined to be named because details of the deal aren't yet public.

The bank is looking to raise about $8 billion in the IPO, expected to be the world's biggest in 2016.

The majority of the investments will come from Chinese companies, as overseas fund managers remain skittish over valuations, the sources added.

PSBC met in late July with several marquee international investors keen to learn more about the bank, its finances and plans for growth, but some were still concerned over unattractive valuations for the lender.

Cornerstone investors agree to keep their stakes for at least six months in exchange for guaranteed allocation on an IPO, but recent volatility in global equity markets means some fund managers aren't willing to be locked up because of fears over short term losses.

Many of the global investors in the PSBC deal will likely buy the shares as anchor investors, which also take big stakes but don't have to keep the shares for several months like cornerstones.

CSSC and PSBC didn't immediately reply to Reuters requests for comment on the cornerstone commitments.

Bank of America Merrill Lynch, China International Capital Corp (CICC), Goldman Sachs, JPMorgan and Morgan Stanley were hired as sponsors of the IPO, according to PSBC's listing documents.

(Reporting by Elzio Barreto and Fiona Lau of IFR; Editing by Muralikumar Anantharaman)