The fundraising aims to replenish core Tier-1 capital to help ensure that the financial system has the necessary resilience and lending capacity. — Bloomberg
BEIJING: China’s major state-owned commercial banks plan to raise up to 520 billion yuan (US$71.7bil) via private placements from investors, including the finance ministry, a forward-looking move which analysts say will help forestall financial risks and better support the real economy.
The fundraising aims to replenish core Tier-1 capital – the core capital held in a bank’s reserves – to help ensure that the financial system has the necessary resilience and lending capacity to support the economy’s transition toward innovation and consumption-led growth, they said.
