Bank Of China Addresses Beijing Concerns With Capital Raising

The Bank of China's decision to sell new shares amounting to a maximum of 20% of existing Hong Kong- and Shanghai-listed shares (subject to shareholder approval in March) embodies Beijing's crackdown on runaway bank lending. Other banks are expected to engage in capital raising exercises, in response to the regulators' request that banks increase their capital adequacy ratios. Bank of China's 11.63% ratio is above the 11% minimum required for large banks, but below ICBC and CCB's ratios above 12%. Hence it comes as no surprise that Bank of China should be the first bank to go to market. Agricultural

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