BoC approved for $8.8b share sale

Bank of China (BoC, 601988.SH, 3988.HK) received approval from the China Banking Regulatory Commission for a US$8.83 billion share placement in Shanghai and Hong Kong, Reuters reported. BoC, China’s fourth-largest bank, is joining its larger rivals in raising funds on capital markets to recapitalize after heavy lending last year to support the government economic stimulus package. The regulator Industrial and Commercial Bank of China (1388.HK) also received plans to issue US$3.98 in convertible bonds in Shanghai. CBRC approval has not been difficult to get; the regulator would prefer that risk of non-performing loans be shared with investors as much as possible.