Industrial and Commercial Bank of China (601398.SH, 1398.HK) plans to raise up to US$6.8 billion in a new rights issue in Shanghai and Hong Kong, the Wall Street Journal reported. The rights issue comes on the heels of stricter capital requirements by the People’s Bank of China and would help prepare the bank for further potential monetary tightening. The bank will sell up to 3.74 billion H-shares at HK$3.49 (US$0.45) each, a 47% discount to its closing price on Wednesday; A shares will sell for RMB2.99 each, a 37% discount. Beijing on Thursday announced stricter reserve requirements on banks as lenders issued US$88.56 billion in new loans in October, above market expectations.
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