China Construction Bank has announced plans to raise up to RMB80 billion through issuing preferred stock in order to comply with strict capital requirements, Bloomberg reported. Of this amount, as much as RMB60 billion will be sold in the domestic market and RMB20 billion overseas. All proceeds will be used to replenish the bank’s Tier 1 capital ratio, which the China Banking Regulatory Commission is requiring systemically-important lenders to be at a minimum of 9.5% by the end of 2018. For more on Chinese banks’ recent spike in issuance of such stocks, see our recent in-depth explanation.
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