BEIJING — China Construction Bank said Friday it plans to issue new shares worth up to 75 billion yuan (11 billion dollars), as the country's lenders heed government orders to boost their capital base.
The bank, one of China's big four state-owned lenders, plans to sell up to 630 million Shanghai-listed A shares and up to 15.73 billion Hong Kong-listed H shares, according to a statement to the Shanghai Stock Exchange.
The size of the issue will be equivalent to no more than seven percent of the bank's existing A shares and H shares.
Proceeds from the rights issue will be used to "strengthen the capital base of the bank", it said.
The issue is still subject to approval from shareholders and regulators.
Chinese banks need to raise funds to meet regulatory requirements for capital after they issued a record 9.6 trillion yuan in new loans last year in response to government calls to support the country's massive stimulus efforts.
The central bank this week urged lenders to replenish their capital base to "strengthen their ability to resist risks and maintain financial stability", amid growing fears over bad debts.
Other major Chinese lenders including Bank of China and Bank of Communications have also announced plans to issue new shares worth tens of billions of yuan.
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