BOC seeks bonds sale to raise its capital
By Zhang Fengming |
May 28, 2010, Friday
|
Print Edition
Print Edition
THE Bank of China wants to issue convertible bonds as soon as possible as part of fundraising efforts to replenish capital after a lending spree in 2009, the bank said yesterday.
The bank also hopes to complete its new H-share issue by the end of this year, its President Li Lihui said yesterday.
China's securities regulator this month granted preliminary approval to the bank to sell up to 40 billion yuan convertible bonds which can be converted into yuan-backed A shares.
BOC, the country's biggest foreign exchange bank, is among a number of Chinese banks lining up to raise capital through new share offerings or bond sales to plug a capital shortage due to loan growth in 2009.
Lenders, including the Bank of Communications and China Construction Bank, have announced plans to replenish capital.
China Construction Bank said it may delay its fundraising plans until early next year due to uncertain market conditions.
Banks in China extended a record 9.59 trillion yuan (US$1.4 trillion) of new loans in 2009 - nearly double the 5 trillion yuan target.
The China Banking Regulatory Commission has already warned it will curtailed banks' expansion and limit their operations if they fail to meet capital adequacy requirements. The big-five state-owned banks are required to meet a minimum of 11 percent.
BOC's capital adequacy fell to 11.14 percent at the end of 2009. The Beijing-based lender suspended trading in Shanghai yesterday.
The bank also hopes to complete its new H-share issue by the end of this year, its President Li Lihui said yesterday.
China's securities regulator this month granted preliminary approval to the bank to sell up to 40 billion yuan convertible bonds which can be converted into yuan-backed A shares.
BOC, the country's biggest foreign exchange bank, is among a number of Chinese banks lining up to raise capital through new share offerings or bond sales to plug a capital shortage due to loan growth in 2009.
Lenders, including the Bank of Communications and China Construction Bank, have announced plans to replenish capital.
China Construction Bank said it may delay its fundraising plans until early next year due to uncertain market conditions.
Banks in China extended a record 9.59 trillion yuan (US$1.4 trillion) of new loans in 2009 - nearly double the 5 trillion yuan target.
The China Banking Regulatory Commission has already warned it will curtailed banks' expansion and limit their operations if they fail to meet capital adequacy requirements. The big-five state-owned banks are required to meet a minimum of 11 percent.
BOC's capital adequacy fell to 11.14 percent at the end of 2009. The Beijing-based lender suspended trading in Shanghai yesterday.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
