China CITIC Bank (601998.SH, 0998.HK) is planning a US$3.84 billion rights issue in Shanghai to raise new funds, the Wall Street Journal reported. CITIC Bank is the latest in a string of Chinese banks that have sought to raise cash to meet stricter government capital requirements. The bank’s board gave its approval to the plan to sell up to 2.2 shares for each 10 existing shares, though shareholder approval is still required for the rights issue, expected to begin in Shanghai on August 18, to go ahead. CITIC’s announcement of its plans follows announcements of rights issues from Industrial and Commercial Bank of China (601398.SH, 1398.HK), Bank of China (601988.SH, 3988.HK) China Construction Bank (601939.SH, 0939.HK) and IPOs by Agricultural Bank of China (601288.SH, 1288.HK) and China Everbright Bank.
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