China Citic Bank Corp. last month announced plans to raise as much as 40 billion yuan ($6 billion), while Agricultural Bank of China Ltd., Industrial Bank Co. and China Zheshang Bank Co. are also boosting capital. China Cinda Asset Management Co. and China Huarong Asset Management Co. are poised to tap investors. China Zheshang Bank said it would raise 15 billion yuan selling offshore preference shares, securities with equity-like characteristics that count as Additional Tier-1 capital. China introduced stricter capital requirements to meet Basel III standards in January 2013 and Bank of China Ltd. was the first Chinese bank to sell preferred shares in 2014. “If it would be implemented system-wide, then you can certainly expect it to be another blow to the banks’ capital,” said Liao at S&P.

Source: Thanhnien News September 05, 2016 03:11 UTC