September 5 -- Shenzhen Development Bank (SDB) (000001) plans to raise 20 billion yuan through a private placement to Ping An Insurance (Group) Company of China (601318, 2318.HK), reports China Business News, citing Xiao Suining, chairman of SDB.

According to bank president, Richard Jackson, the private placement was directed by the regulators and was not a fund raising planned by its major shareholder, Ping An.

Xiao said SDB was unable to pay any dividends to its investors for a number of years due to insufficient capital for its development. The price of the private placement was fixed at 16.81 yuan per share.

Xiao said the total amount of funds to be raised will be sufficient for its development over the next two to three years.

Jackson said SDB had lost market share in the past five years due to capital limitations. The bank will open 25-30 branches in the coming year and establish rural village banks in the Shenzhen area to increase its market share.