BoCom private placement

BoCom seeks $9 billion through private placement

The deal will make Bank of Communications the best capitalised bank among its domestic peers, analysts say.
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Chinese banks are boosting capital to protect against a rise in bad loans
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<div style="text-align: left;"> Chinese banks are boosting capital to protect against a rise in bad loans </div>

Bank of Communications BoCom, China’s fifth-largest lender by assets, plans to raise Rmb56.6 billion $9 billion in what could be one of the world’s biggest share sales this year. The deal will make Bocom the country’s best-capitalised bank, analysts say.

Although the transaction will be made through a private placement with a dozen institutional investors participating, the massive scale of the offering signals that China remains focused on promoting economic growth and is starting to let the banks increase their lending capacity. BoCom is the first Chinese bank to replenish its capital reserves after Beijing tightened capital rules for the country’s lenders last year.

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