More News
RETAIL BANKING | Cesar Tordesillas, China

Chinese banks under pressure to raise cash next year: source

China's listed banks are expected to raise over 100 billion yuan or $15.78 billion through equity financing next year.

The banks face pressure to replenish capital due to rapid loan growth and tighter regulation, the China Securities Journal reported on Tuesday.

Citing analysts, the official paper said banks facing such pressure included Agricultural Bank of China , Industrial Bank Co Ltd  and Bank of Communications.

Banks are also expected tap the debt market for funding, it said.

The bulk of the expected equity financing would be funded by government shareholders, the paper said. Listed banks raised more than 270 billion yuan via equity financing in 2010 and nearly 290 billion yuan worth of debt this year, according to the article.

Chinese banks will be under fundraising pressure because new lending next year is expected to exceed 8 trillion yuan -- a level necessary to support economic expansion -- potentially weakening lenders' balance sheets, the newspaper said.

For the source of this story, click here.

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.