China Minsheng Banking Corp (600016.SH, 1988.HK) plans to replenish capital through a share sale in Shanghai worth about US$3 billion, Bloomberg reported, citing a person with knowledge of the matter. The company, China’s first non state-owned lender, is set to announce the private placement on Friday, following a board meeting. Minsheng said on Thursday that its Shanghai and Hong Kong-listed shares will be suspended from trading, pending an announcement. The bank requires new funds after its core capital adequacy ratio fell to the second-lowest among Hong Kong-listed lenders. Barclays Capital (Barclays; BCS.NYSE, BARC.LSE) estimates that Minsheng may need to raise US$2.8 billion to increase the ratio to above 10%. China’s banking regulator said in September that it is drafting new guidelines for domestic banks’ capital levels after the Basel Committee raised global requirements.
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