Member access

4-Traders Homepage  >  Shares  >  SHANGHAI STOCK EXCHANGE  >  Bank of Communications Co Ltd    601328   CNE1000000S2

SummaryQuotesChart AnalysisNewsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll news 

Bank Of Communications Shareholders OK $9 Billion Private Placement

05/09/2012 | 06:11am US/Eastern

Bank of Communications Co. (3328.HK) said Wednesday its shareholders approved a plan to raise CNY56.6 billion (US$9 billion) via a private placement to shore up its capital base in the face of stricter banking rules.

The approval paves the way for China's fifth-largest bank by assets to become the first major domestic bank to seek to raise capital since the country's banking regulator drafted strict new capital-adequacy-ratio requirements last year.

The deal is still subject to approval from China's banking and securities regulators, Bank of Communications said in a statement.

The bank, known as BoCom and 19%-owned by HSBC Holdings PLC (HBC), said in March it would issue 6.54 billion yuan-denominated A shares at CNY4.55 each and 5.84 billion Hong Kong dollar-denominated shares at HK$5.63 each.

Twelve institutional investors, including China's Ministry of Finance and National Social Security Fund, HSBC, auto maker FAW Group, and tobacco manufacturer Hongta Group, will take part in the placement.

Under China's newly drafted capital requirements, banks that are considered important to China's financial system, such as major state-owned lenders like BoCom, will be required to maintain a ratio of core capital to risk-weighted assets of at least 9.50% by 2013.

The drive is aimed at containing the risks from certain assets, such as mortgage loans.

As of March 31, BoCom's core capital represented 9.39% of its risky assets, according to its latest financial reports.

To protect its capital from deteriorating, the bank eliminated its interim dividend for the January-June period of 2011, the first time in four years.

-Rose Yu contributed to this article, Dow Jones Newswires; 8621 6120-1200; rose.yu@dowjones.com

React to this article
Latest news on BANK OF COMMUNICATIONS CO
1d ago BANK OF COMMUNICATIONS : PBOC Will Inject Liquidity Into System As Necessary
6d agoDJASIA MARKETS : Japanese Stocks Suffer As Economy Falls Into Recession
11/11 BOC lifts mood for China bank capital
11/10DJASIA MARKETS : Hong Kong Stocks Stage Solid Rebound On Stock Connect
11/05 BIG COMPANIES DISCLOSE TOO LITTLE ON : watchdog
11/05 Big companies disclose too little on operations abroad - watchdog
11/03 Contracting deposits add to warning signs
11/03 China Oct PMIs point to cooling economic momentum, growth target at risk
11/03 China October PMIs point to cooling economic momentum, growth target at risk
11/02 Sydney set to become yuan hub, clearing bank appointment eyed
Advertisement
Chart
Duration : Period :
Bank of Communications Co  Technical Analysis Chart | 601328 | CNE1000000S2 | 4-Traders
Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF