China Everbright Bank, which is based in the Chinese capital Beijing, might be planning to launch an Initial Public Offering (IPO) in Hong Kong aiming to raise $1.5 billion to meet stricter requirements.

This will be mid-sized lender’s third attempt to launch a Hong Kong initial public offering. It is believed that the bank has decided to restart proceedings for the IPO that is expected in the third quarter of the year. Officials indicated that the bank would now seek an approval from the board of the directors for the share offering in the Hong Kong market.

The benchmark, Hang Seng Index increased 1.8 per cent to 23,188.40 this afternoon at the time of reporting. The index is heading for a weekly increase of 1.3 per cent and its highest close since 20, February, 2013. The Hang Seng China Enterprises Index representing Mainland China companies also recorded an increase of 1.8 per cent to 11,516.82.

Meanwhile, the HSI Volatility Index (VHSI) slid 3.4 per cent to 14.76. This suggests that the investors believe that there will be a swing of 4.2 per cent for the benchmark index in the coming one month.