Bilibala: I don't think China Construction Bank need cash, if the cash is merely try to fulfil the high capital requirement by the regulator, I hope it will have a better use of it. Or else, it is not a great decision for the existing shareholders.
http://uk.reuters.com/article/idUKTOE63504620100406
SHANGHAI, April 6 (Reuters) - China Construction Bank (CCB) (0939.HK) (601939.SS), the country's second-biggest lender, plans to raise about 75 billion yuan ($11 billion) through share sales this year to replenish its capital, Bloomberg News reported on its website, citing unidentified sources.
CCB may raise as much as 45 billion yuan in a private placement in Shanghai and 30 billion yuan in a rights offer in Hong Kong, the report said.
The fundraising plan has won approval from the State Council, or China's cabinet, and is subject to revision according to market conditions, the article said.
Zhang Jinguo, deputy general manager of CCB's board of directors office, declined to comment.
CCB, in which Bank of America (BAC.N) owns an 11 percent stake, met on March 10 to discuss potential fundraising plans, sources familiar with the matter told Reuters. [nTOE62P06S]
CCB Chairman Guo Shuqing said last week the bank was examining ways of raising capital but had no immediate plans to do so. [nTOE62S08A]
Chinese banks, including Bank of China (3988.HK) (601988.SS) and Industrial and Commercial Bank of China (1398.HK) (601398.SS), are rushing to raise cash after last year's government-directed lending binge weakened their balance sheets.
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