Bank of Communications' debut is popular with small investors

Chinese financial regulators have made modernising the banking system into a policy priority. International share listings are part of this.

The bank will become the first mainland financial institution to list its major operations on the Hong Kong exchange.

Until now only its bigger rival, Bank of China, has listed in Hong Kong - and that involved only its local unit.

Bank of Communications is China's fifth biggest lender, and HSBC owns a 19.9% shareholding.

China's top four state-run banks have all been ordered to prepare for international listings, but scandals have emerged in the process of cleaning up their balance sheets and set back progress.