Four major Chinese state-owned banks aim to raise a combined 520,000 million yuan (71.6 billion USD) through private placements of investors. This move comes after Beijing pledged support to help sustain the economy.
The fundraising, intended to boost the banks’ Tier 1 capital base, follows Chinese authorities’ earlier promise this month to recapitalize top state-owned banks with 500,000 million yuan to enhance their real economy support capacity.
- Bank of China: Aims to raise up to 165,000 million yuan.
- China Construction Bank: Plans private placements of up to 105,000 million yuan.
- Bank of Communications: Will sell shares worth up to 120,000 million yuan.
- Postal Savings Bank of China: Intends to raise up to 130,000 million yuan.
The Ministry of Finance of China, a major shareholder in the four banks, will participate in all four capital increases, according to documents submitted. The Ministry will become the majority shareholder of Bank of Communications post-share issuance.
