With the decision last month by EastMoney to list itself on the NASDAQ later this year, China's financial sector took a step forward in the eyes of many investors. Now two of China's city commercial banks, the Bank of Nanjing and the Bank of Ningbo, have decided to float A-share IPOs to raise capital. They become China's first two city-level commercial banks to go public.

According to Singapore's daily paper, The Straits Times, the Bank of Nanjing plans to issue up to 700 million A-shares (about 37 percent of its enlarged capital) on the Shanghai Stock Exchange. Up to 70 percent of those shares will be sold to retail investors. Just over 19 percent of the Bank of Nanjing is currently owned by French lender BNP Paribas SA (13110.FR). Citic Securities is underwriting of Bank of Nanjing's IPO.

The Ningbo bank will float as much as 450 million A-shares (18 percent of its enlarged capital) on the Shenzhen Stock Exchange. Some 60% of the Ningbo offering will be available to retail investors. About 12 percent of the Bank of Ningbo is owned by Singapore's OCBC group (O39.SG). Goldman Sachs Gao Hua Securities is underwriting the IPO for the Bank of Ningbo. The Ningbo float will be the largest such offering in Shenzhen in half a decade.

The yuan-denominated A-shares will be available for subscription on July 11 and 12. Final pricing will be made public on July 16. ABC Money in the UK is reporting, however, that a price ceiling for Bank of Nanjing's IPO will be 10 yuan per share.