Web Exclusive

China approves 287b yuan bank fundraising

By Yu Hongyan (chinadaily.com.cn)
Updated: 2010-05-13 11:06
Large Medium Small

China's State Council, or Cabinet, has approved refinancing plans for the country's four State-owned listed banks to raise a combined 287 billion yuan ($42.04 billion), the National Business Daily reported today, citing unidentified sources.

Related readings:
China approves 287b yuan bank fundraising Buy or sell-China banks: good time deposits or ticking bombs?
China approves 287b yuan bank fundraising Two China banks may tweak fund-raising plans
China approves 287b yuan bank fundraising China urges banks to broaden profit channels
China approves 287b yuan bank fundraising China's big banks need $70b capital in 5 years

Two of the banks have already unveiled their fundraising plans, with Bank of Communication to raise 42 billion yuan through rights issues in Shanghai and Hong Kong, and China Construction Bank (CCB) to raise no more than 75 billion yuan.

Bank of China (BOC) and Industrial and Commercial Bank of China (ICBC) are yet to release their fundraising size, but sources say BOC is to raise 100 billion yuan with ICBC to raise 70 billion yuan.

Both the BOC and ICBC are to sell A-share convertible bonds in Shanghai and offer H-share rights issues in Hong Kong, according to the paper.