China Merchants Bank's rights issue won't address all its capital woes

The long-awaited $3.2 billion rights issue of China Merchants Bank (CMB) is one step closer to happening. The lender has announced a plan to offer 1.3 new shares for every 10 held by investors of its Shanghai- and Hong Kong-listed stock, but analysts warn the bank will remain a thinner capitalised lender even after the capital replenishment.