Why Chinese banks are bolstering their capital ratios

Deal flow set to pick up if regulatory hold ups are resolved and markets play ball.

The restructuring of the shadow banking sector and a looming Basel III deadline is prompting Chinese banks to increase their capital raising efforts, with a wave of transactions expected to hit the capital markets subject to regulatory sign off. 

First off has been Bank of China Hong Kong, which raised $3 billion from a perpetual non-call five Additional Tier 1 AT1 deal on Tuesday.

Investment bankers working in Asia’s financial institutions FIG sector say it is notable that the year's first Chinese dollar-denominated AT1 deal has come from a bank's overseas subsidiary. 

Bank of China HK had far more...

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