Bank of China (BoC) is planning to issue convertible bonds as part of its fundraising efforts to replenish capital after last year’s lending spree, state media reported. BoC president Lieu said the bank also hopes to complete its new H-share issue by the end of this year. The China Securities Regulatory Commission recently granted preliminary approval to BoC to sell up to US$5.85 billion worth of convertible bonds. Several other lenders including Bank of Communications and China Construction Bank have also announced similar plans to raise funds. Chinese banks issued US$1.4 trillion in new loans last year, more than double the full-year target. The banking regulator said it would rein in banks’ expansion plans and limit their operations if they fail to meet capital adequacy requirements.
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