China Merchants Bank plans rights issue

China Merchants Bank (CMB) plans to raise up to Rmb35 billion ($5.4 billion) from a rights issue of A- and H-shares as it tries to boost its reserves to meet new capital adequacy requirements. The rights issue will hit the market in September at the earliest, according to a statement the bank made yesterday, adding further to the amount of capital-raising in the financial sector during the second half of this year.