Bank of China, the second-largest lender on China's mainland, will limit its overseas and mainland share sales to 15 percent of its enlarged share capital, the bank's chairman said yesterday.

The Beijing-based lender will probably sell less than 4.5 percent of its shares on the mainland market after completing global sales this month.

The overseas initial public offering already accounts for 10.5 percent, and may rise to 12 percent to cover possible demand, leaving fewer shares for the mainland sale.

It plans to issue no more than 10 billion Class A shares after offering H shares to be traded in Hong Kong and hopes to collect no more than 20 billion yuan (US$2.5 billion) from mainland investors.

Chairman Xiao Gong said at a press conference in Hong Kong that the issuance of A shares will be completed by July 2007, adding it will not harm the interests of H-share holders.

"We'll proceed with the domestic share sale plan as soon as we can after completing the global offering," Xiao said. "The combined shares will not exceed 15 percent."

The mainland market watchdog this month lifted a one-year ban on share sales it put in place to prevent a flood of equity as companies converted non-tradable, mostly government holdings into common stock.

The global offering, the world's biggest IPO in six years, is already six times subscribed, one of the sale's arrangers said. The bank plans to start trading in Hong Kong on June 1.

"We are a leader with strong product innovation capabilities," Xiao said. "The overall listing of the bank in Hong Kong is to open another exciting chapter of the bank's 100-year history."