中國

China lenders tap markets in move to offset state squeeze

Just six months after raising $22.1bn in the world’s largest initial public offering to date, Agricultural Bank of China is returning to the market to raise a further $7.6bn through a sale of subordinated debt.

Meanwhile, mid-sized China Minsheng Bank announced a $3.2bn private placement of its shares on Thursday, in spite of having raised $4bn in a Hong Kong IPO in late 2009, when it said it had no plans to sell any more equity until the end of 2012.

The fact that both banks are returning to the capital markets so soon is an early indicator of the hurdles Chinese banks will face this year as Beijing tries to rein in credit growth and tackle stubbornly high inflation.

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