Regulator reviews BoC, CCB rights issues

The China Securities Regulatory Commission (CSRC) will review plans by the Bank of China (BoC, 601988.SH, 3988.HK) and China Construction Bank (CCB, 601939.SH, 0939.HK) to raise a combined US$20 billion in rights issues in Shanghai and Hong Kong, Dow Jones Newswires reported. BoC said it plans to raise up to US$9 billion while CCB announced plans in April that it would raise up to US$11 billion. Proceeds will be used to raise the banks’ capital bases after last year’s lending bonanza. Bank of America Merrill Lynch (BAC.NYSE) said Chinese banks raised an aggregate US$104 billion from the capital markets over the January-August period.