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AgBank IPO: What’s It Mean For American Investors?

Investors around the globe are closely watching the IPO of AgBank to determine if investor appetite for China is nearing a saturation point.

And as far as we can tell - it isn't.

On Tuesday, the Agricultural Bank of China raised about $19.2 billion in its IPO a show of strong demand for China’s third-largest bank by assets.



Behind The Move

AgBank (ABC.UL) is going public for several reasons, among them to allow Beijing to complete its goal of listing the country's top four banks, several of which also went through insolvency periods in the last decade.

They are now among the largest banks -- and companies -- in the world by market capitalization and assets.

Among the investors in AgBank’s offering were the Qatar Investment Authority, the Kuwait Investment Authority and Standard Chartered, that’s according to Bloomberg.

AgBank's offering will also provide a guide for the other Chinese banks that are considering raising money through stock sales.

What should you make of it?

It suggests the market has an appetite for continued growth in China, says David Riedel of Riedel Research on Fast Money. However, if you’re looking for a China play I'd suggest playing the consumer; look at the mobile companies or the Hong Kong property companies, he says.


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Trader disclosure: On July 6, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Pete Najarian Owns (CRUS) Call Spreads; Pete Najarian owns (AKAM) call spreads; Pete Najarian owns (GNW); Seymour owns (AAPL), (BAC), (GOOG), (INTC), (POT); Kelly owns (BP) puts; Kelly owns (FCX) puts; Kelly owns (GLD); Kelly owns (GDXJ); Kelly is short (GS); Terranova owns (MON), (AGU), (KO), (XOM), (TEVA), (RDS.A), (GMCR), (UPL), (GS); Terranova owns (GLD) July 123 puts; Terranova owns (GS) JULY 130 CALLS; Terranova owns (GS) JULY 135 CALLS; Terranova is short gold

For Tim Seymour:
Seygem Owns (WBD)

For JoeTerranova
Terranova works for (VRTS)
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners owns more than 1% of (CASS)
Virtus Investment Partners owns more than 1% of (LDR)
Virtus Investment Partners owns more than 1% of (LPHI)
Virtus Investment Partners owns more than 1% of (MGRC)
Virtus Investment Partners owns more than 1% of (XLB)
Virtus Investment Partners owns more than 1% of (XLP)
Virtus Investment Partners owns more than 1% of (XLY)
Virtus Investment Partners owns more than 1% of (XLI)
Virtus Investment Partners owns more than 1% of (XLK)
Virtus Investment Partners owns more than 1% of (XLU)
Virtus Investment Partners owns more than 1% of (SUBK)
Virtus Investment Partners owns more than 1% of (WDFC)
Virtus Investment Partners owns more than 1% of (YDNT)
Virtus Investment Partners owns more than 1% of (DRYS)

For Anthony Scaramucci
Scaramucci and SkyBridge Capital own (BAC)
Scaramucci and SkyBridge Capital own (BP)
Scaramucci and SkyBridge Capital own (C)
Scaramucci and SkyBridge Capital own (GOOG)
Scaramucci and SkyBridge Capital own (GS)

For Brian Kelly
Accounts managed by Kanundrum Capital own (AUY)
Accounts managed by Kanundrum Capital own (GFI)
Accounts managed by Kanundrum Capital own Gold
Accounts managed by Kanundrum Capital own Treasuries
Accounts managed by Kanundrum Capital own US Dollars
Accounts managed by Kanundrum Capital is short (AMZN)
Accounts managed by Kanundrum Capital is short (RCL)
Accounts managed by Kanundrum Capital is short (XLY)
Accounts managed by Kanundrum Capital is short (XLE)
Accounts managed by Kanundrum Capital is short (AFL)
Accounts managed by Kanundrum Capital is short (CME)
Accounts managed by Kanundrum Capital is short (EWI)
Accounts managed by Kanundrum Capital is short (EWO)
Accounts managed by Kanundrum Capital is short (GS)
Accounts managed by Kanundrum Capital is short (HIG)
Accounts managed by Kanundrum Capital is short (RKH)
Accounts managed by Kanundrum Capital is short (XLF)
Accounts managed by Kanundrum Capital is short (XLI)
Accounts managed by Kanundrum Capital is short (FCX
Accounts managed by Kanundrum Capital is short (GFI)
Accounts managed by Kanundrum Capital is short (JOYG)
Accounts managed by Kanundrum Capital is short (XLB)
Accounts managed by Kanundrum Capital is short (XLK)
Accounts managed by Kanundrum Capital is short (V)
Accounts managed by Kanundrum Capital is short (PCAR)
Accounts managed by Kanundrum Capital is short (COF)
Accounts managed by Kanundrum Capital is short (KMX)

Deborah Weinswig
Employees Of Citi Own (WMT), (JCP)
An Employee Of Citigroup Global Markets Or Affiliates Is A Trustee Of (TGT) Citigroup Global Markets Or Affiliates Owns 1% Or More Of (SKS) Citigroup Global Markets Or Affiliates Has Managed Or Co-Managed An Offering Of (DG), (KR), (WMT) In Past 12 Months Citigroup Global Markets Or Affiliates Has Received Investment Banking Compensation For Services Provided In Past 12 Months From (DG), (KR), (SKS), (SVU), (TGT), (WMT) Citigroup Global Markets Or Affiliates Expects To Receive/Seek Investment Banking Compensation From (WMT) In Next 3 Months Citigroup Global Markets Or Affiliate Received Non-Investment Banking Compensation From (HD), (JCP), (KSS), (KR), (M), (SWY), (SVU), (TGT), (WAG), (WMT), (COST) In Past 12 Months (DG), (KR), (SKS), (SVU), (TGT), (WMT) Are Or In Past 12 Months Were Investment Banking Clients Of Citigroup Global Markets (CVS), (DG), (HD), (JCP), (KSS), (KR), (M), (SWY), (SKS), (SVU), (TGT), (WAG), (WMT), (COST) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Securities-Related Services) (HD), (JCP), (KSS), (KR), (M), (SWY), (SVU), (TGT), (WAG), (WMT), (COST) Are Or In Past 12 Months Were Clients Of Citigroup Global Markets (Non-Investment Banking, Non-Securities Related) Citigroup Global Markets Or Affiliate Received Compensation From (DG) In Past 12 Months Citigroup Global Markets Is A Market Maker In (CVS), (M), (COST) Citigroup Global Markets And/Or Affiliates Has A Significant Financial Interest In Relation To (HD), (JCP), (KR), (LOW), (M), (JWN), (SWY), (SVU), (TGT), (WMT), (COST) Citigroup Global Markets Or Affiliates Owns 5% Or More Of (SKS)

Doug Kass
**No Disclosures**

Mark Zandi

**No Disclosures**

David Riedel
**No Disclosures**

Scott Nations
**No Disclosures**


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