STANCHART FALLS ON WORRIES OVER ASIA SLOWDOWN

The London-headquartered bank, which is due to issue a trading statement today, is expected to reiterate the position it laid out two weeks ago and say it has no plans to use the UK government's £37bn bank bail-out to raise capital.

Analysts at Citigroup, however, said yesterday that StanChart may need to raise $5bn of capital, of which $3bn is likely to be equity. This would take its core tier one ratio from 6.1 per cent in the first half of 2008 to 7.6 per cent on a proforma basis – in line with HSBC, but below the Asian bank average of 10.5 per cent.

Shares in StanChart fell 78p to 680p as worries over the health of emerging markets also knocked 4.74 per cent from HSBC's shares.

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