China Minsheng Banking (600016.SH, 1988.HKG) will sell new shares in a Hong Kong offering priced at HKD6.79 (US$0.87), the latest in what may be a wave of capital-raising by Chinese banks, Bloomberg reported. An unnamed source said Minsheng, China’s first non-state lender, hopes to raise US$1.45 billion by offering 1.65 billion of new shares. New requirements set to take effect at the end of next year mandate “systemically important” big banks to maintain a minimum capital adequacy ratio of 11.5% and smaller banks (such as Minsheng) a ratio of 10.5%. Minsheng’s ratio was 10.86% as of the end of last year, the lowest among the nine listed Chinese banks in Hong Kong. Analysts say the looming regulatory deadlines could lead to a round of fund-raising by China’s banks, particularly among mid-tier lenders. Last week, Bank of Communications (601328.SH, 3328.HKG) said it would raise US$9 billion from a private equity placement.
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