China Merchants Bank gets approval for $5.5 billion rights issue

The Chinese lender will tap both its A- and H-shareholders as it joins a long line of Chinese banks that are selling shares to boost their capital ratios.

China Merchants Bank gets approval for $5.5 billion rights issue
China Merchants Bank’s headquarters in Shenzhen, China (Imaginechina)

China Merchants Bank CMB has received the green light from regulators to go ahead with a massive rights issue that could raise up to Rmb35 billion $5.5 billion. The approval means it will be able to join the wave of Chinese banks raising funds to fortify their balance sheets. The timetable has yet to be set, however.

Given the size, the deal is likely to be a big drain on the appetite for banking...

To continue reading, please login or register for free

Print Edition

FinanceAsia Print Edition

CONFERENCES