China Merchants Bank (CMB) said it would consider raising funds in the equity market through a share placement or rights issue, the South China Morning Post reported. The move would be intended to replenish the bank’s tier-one capital, an indicator of financial strength. The new funds would be separate from a potential bond issue for which CMB last week said it was seeking shareholder approval. Such bond financing arrangements would not help to boost tier-one capital. CMB Chairman Qin Xiao said Chinese banks would face narrowing net interest margins this year, which may not be offset by loan growth.