Related News
Citic Bank to raise US$3.8 billion from rights offer
By Zhang Fengming |
August 12, 2010, Thursday
|
Online Edition
Online Edition
CHINA Citic Bank Corp plans to raise up to 26 billion yuan (US$3.8 billion) in a rights offer to replenish capital, it said today.
The bank will offer up to 2.2 shares for every 10 held, for as many as 8.59 billion shares in Shanghai and Hong Kong, the bank said in a filing to the Shanghai Stock Exchange today.
The rights offer is pending approval from shareholders and regulator.
The bank is among its domestic rivals dashing to raise capital after a record loan extension since 2009.
China's five biggest state-owned banks have a combined capital raising offer of US$60 billion while smaller banks like China Merchants Bank and China Everbright Bank also joined the battle for capital.
Citic Bank's capital adequacy ratio, the main gauge of financial strength, sat at 10.95 percent as the end of June, down from the 14.32 percent as the end of 2008 before China's record credit flow of 9.6 trillion yuan was made in 2009.
The Beijing-based bank's capital ratio was above the regulatory minimum of 10 percent on smaller banks. However, it still need the backup of capital to propel further growth.
Meanwhile, China's biggest investment banking group said today its first-half profits gained 45 percent year on year to 10.7 billion yuan.
"The bank's interim report is better than expected mainly due to its improving ability to cut credit cost," said Sinolink Securities Co in a research note today.
The bank will offer up to 2.2 shares for every 10 held, for as many as 8.59 billion shares in Shanghai and Hong Kong, the bank said in a filing to the Shanghai Stock Exchange today.
The rights offer is pending approval from shareholders and regulator.
The bank is among its domestic rivals dashing to raise capital after a record loan extension since 2009.
China's five biggest state-owned banks have a combined capital raising offer of US$60 billion while smaller banks like China Merchants Bank and China Everbright Bank also joined the battle for capital.
Citic Bank's capital adequacy ratio, the main gauge of financial strength, sat at 10.95 percent as the end of June, down from the 14.32 percent as the end of 2008 before China's record credit flow of 9.6 trillion yuan was made in 2009.
The Beijing-based bank's capital ratio was above the regulatory minimum of 10 percent on smaller banks. However, it still need the backup of capital to propel further growth.
Meanwhile, China's biggest investment banking group said today its first-half profits gained 45 percent year on year to 10.7 billion yuan.
"The bank's interim report is better than expected mainly due to its improving ability to cut credit cost," said Sinolink Securities Co in a research note today.
- 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.
