China Merchants Bank Co. (CMB), the nation''s sixth-largest lender, may set the price of its Hong Kong stock offer, expected to be worth about US$2 billion, lower than the market had expected, the Shanghai Securities News said yesterday.

The market had expected CMB to price its Hong Kong initial public offering (IPO) in a range between HK$8 (US$1.03) and HK$10 for a planned 2.53 billion share offer, or 17 percent of the Shenzhen-based bank''s enlarged share capital, the paper said.

"The Hong Kong IPO price may be set lower than the market had expected" to ensure a smooth sale, the newspaper said, quoting a source closed to the bank''s underwriters.

It said an appropriate price would allow CMB to win a strong subscription.

Sources have said the company is eyeing a listing in late September.

CMB''s Shanghai-listed A shares closed at 8.37 yuan, having surged 14 percent since early August, buoyed by its plan to float shares in Hong Kong. -Shenzhen Daily