July 2 (Bloomberg) -- Bank of China Ltd., Asiaâs third- largest lender by market value, plans to raise as much as 60 billion yuan ($8.9 billion) in a rights offer to replenish capital.
The lender will sell 1.1 shares for every 10 held, or as many as 19.56 billion shares in Shanghai and 8.36 billion in Hong Kong, a statement to the Hong Kong stock exchange showed today. Beijing-based Bank of China, which made more loans than any local rival last year, in June completed the sale of 40 billion yuan of six-year bonds that can be converted into shares.
The new sale adds to as much as $45.6 billion in fundraising announced by Chinaâs five biggest state-controlled banks after they extended record loans last year to support a government-led stimulus plan. Agricultural Bank of China Ltd., the nationâs largest lender by customers, is in the midst of a $20.1 billion initial public offering in Shanghai and Hong Kong.
A sale by Bank of China would âdamage market sentiment and banking shares further because weâve already been flooded by share offerings,â Tang Yayun, a Shanghai-based analyst at Northeast Securities Co., said before the announcement. âThis is a surprise given that they just completed a bond sale.â
http://noir.bloomberg.com/apps/news?pid=20601087&sid=a5Hzjdgl6HXU&pos=2
There is a lot that China is doing right. The regulatos are forcing banks to replenish capital. Excellent policy move taking into consideration the global environment.
The lender will sell 1.1 shares for every 10 held, or as many as 19.56 billion shares in Shanghai and 8.36 billion in Hong Kong, a statement to the Hong Kong stock exchange showed today. Beijing-based Bank of China, which made more loans than any local rival last year, in June completed the sale of 40 billion yuan of six-year bonds that can be converted into shares.
The new sale adds to as much as $45.6 billion in fundraising announced by Chinaâs five biggest state-controlled banks after they extended record loans last year to support a government-led stimulus plan. Agricultural Bank of China Ltd., the nationâs largest lender by customers, is in the midst of a $20.1 billion initial public offering in Shanghai and Hong Kong.
A sale by Bank of China would âdamage market sentiment and banking shares further because weâve already been flooded by share offerings,â Tang Yayun, a Shanghai-based analyst at Northeast Securities Co., said before the announcement. âThis is a surprise given that they just completed a bond sale.â
http://noir.bloomberg.com/apps/news?pid=20601087&sid=a5Hzjdgl6HXU&pos=2
There is a lot that China is doing right. The regulatos are forcing banks to replenish capital. Excellent policy move taking into consideration the global environment.