Money

Commercial banks' refinancing to exceed 200b yuan

By Cai Muyuan (chinadaily.com.cn)
Updated: 2010-10-12 14:44

China's commercial banks will speed up their refinancing pace in the fourth quarter in order to raise the capital adequacy ratio and core capital adequacy ratio, Shanghai Securities News reported on Oct 12.

According to an earlier refinancing plan, Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB) and Bank of China (BOC) will refinance through stock allotment of A shares and H shares, with limits of 45 billion yuan ($6.7 billion), 75 billion yuan and 60 billion yuan respectively, the newspaper reported.

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According to the newspaper, China CITIC Bank held its shareholder meeting on Sept 30 and approved a 26 billion yuan stock allotment through A shares and H shares. With that, refinancing of the four banks would exceed 200 billion yuan.

Although commercial banks have implemented intensive refinancing plans in the fourth quarter, the impact to the market will not be huge, according to analysts. "The total refinancing in A-share market of ICBC, BOC and CCB are not expected to exceed 10 billion yuan," said Wu Yonggang, an analyst with Guotai Junan Securities.

Statistics from Industrial Securities showed that by Sept 30, 350 billion yuan in refinancing plans of listed companies was achieved, while 200 billion yuan in refinancing plans remain in the A-share market. "The refinancing of banking stocks has little impact on the market now," Wu said, according to the newspaper.