China approves banks' $42b fundraising proposal

China’s cabinet has approved proposals by the country’s four largest listed banks to raise a combined US$42 billion in additional financing from the securities markets, the Wall Street Journal reported, citing the National Business Daily. The decision comes as Industrial & Commercial Bank of China (1398.HK), China Construction Bank (0939.HK), Bank of China (3988.HK) and Bank of Communications (3328.HK) have unveiled fundraising plans in recent months. China Construction Bank plans to raise US$10.9 billion, while Bank of Communications plans to raise US$6.1 billion by conducting rights issues in Shanghai and Hong Kong. The cabinet also approved ICBC’s plans to raise up to US$10.2 billion, and Bank of China may raise up to US$14.6 billion. ICBC and Bank of China also announced earlier that the banks plan to sell convertible bonds in Shanghai and sell additional shares in Hong Kong.