State-owned Chinese conglomerate CITIC Group has injected 5 billion Chinese yuan (US$626 million; euro490 million) into subsidiary CITIC Bank to boost the midsized lender's capital base ahead of a planned Hong Kong initial public offering, CITIC International Financial Holdings Ltd. said Monday.

Hong Kong-listed CITIC International, the offshore banking unit of CITIC Group, said the fund injection raises CITIC Bank's capital adequacy ratio to "enhance its attractiveness to potential investors prior to and for its planned listing."

At the end of 2005, CITIC Bank's capital adequacy ratio was at 8.11 percent, which met Chinese regulatory requirements. CITIC didn't give the ratio after the injection.

CITIC Bank President Chen Xiaoxian said last month the Chinese bank plans to raise US$2 billion (euro1.57 billion) in a Hong Kong IPO by the end of this year.

Chen said the proceeds from the offering would help the bank meet its business development needs for the next four to five years.

CITIC International also said it is in preliminary discussions with strategic foreign investors.

"The company doesn't rule out the possibility that the same foreign strategic investor may also be considered as a potential strategic investor in CITIC Bank to ensure a close coordinated strategy," it said.

CITIC International's holding in CITIC Bank will fall to 16.4 percent after the capital injection, from 19.9 percent previously.

Hong Kong has seen a slew of Chinese bank listing in the past year. Bank of China raised US$9.7 billion (euro7.63 billion) last month and China Construction Bank raised US$9.2 billion (euro7.24 billion) in October.

China's largest lender, the Industrial and Commercial Bank of China (ICBC) Ltd., reportedly plans to list here in October in an IPO that's expected to raise US$12 billion (euro9.44 billion).

CITIC Bank's operating profit rose 27 percent in 2005 to 6.33 billion yuan (US$792 million; euro620 million), and its net profit was 2.96 billion yuan (US$370 million; euro290 million), according to state media reports.

The bank's loans totaled 370.68 billion yuan (US$46 billion; euro36 billion), and its deposits stood at 530.92 billion yuan (US$66 billion; euro52 billion) at the end of last year, the reports said. CITIC Bank's assets at the end of last year totaled 616.54 billion yuan (US$77 billion; euro60 billion).