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 shares. Indeed, unlike several of its domestic peers that have opted for placements of either A- or H-shares, CMB plans to tap existing holders of both its A- and H-shares.
It will...
¬ Haymarket Media Limited. All rights reserved.
