CCB and BOC seek $18.2 billion from rights issues

The long-awaited share sales are offered at discounts of around 40%.

China Construction Bank yesterday launched its long-awaited rights issue, saying it is seeking to raise up to Rmb61.6 billion $9.2 billion from the sale of new shares to existing holders of its A- and H-shares. The sale is slightly smaller than the Rmb75 billion that the Chinese lender had earlier flagged and sought approval for from its shareholders, which could be the result of stronger-than-expected earnings. However, the shares are also offered at a more than 40% discount.

The offering comes just days after the Bank of China kicked off its rights issue of up to Rmb59.88 billion $9 billion. It too is offering to sell its new shares at a deep discount. Both...

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