China’s biggest banks plan to raise more than a combined Rmb190bn ($28.4bn) in the coming weeks through rights issues in Shanghai and Hong Kong as they seek to shore up their balance sheets in the aftermath of a record lending spree.
China Construction Bank, the world’s second-largest lender by market value, said on Tuesday it intends to sell around Rmb61.7bn worth of shares to existing shareholders later this month. Bank of China, the country’s fourth-largest lender by assets, has also said it plans to raise Rmb60bn through a joint Hong Kong and Shanghai rights issue in the coming weeks.
Industrial and Commercial Bank of China, the world’s most valuable and profitable bank, plans to raise Rmb45bn through its own rights issue in the two markets, while the smaller Citic Bank will raise Rmb26bn.