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Bank Of China Due To Kick Off Basel III Capital Fund-Raising Drive - Report
Tom Burroughes
14 October 2014
is due to issue its first tranche of preferred shares that comply with Basel III capital rules, the start of a group of similar moves from banks on the Mainland as regulations take effect, media reports said.
Mainland banks are likely to issue a total of around RMB310 billion ($50.6 billion) such paper, according to the South China Morning Post.
In August this year, BOC logged after-tax profits of RMB93.409 billion in the first six months of 2014, up by 10.97 per cent year on year; after-tax profits attributable to shareholders amounted to RMB89.724 billion, up 11.15 per cent year on year. That interim statement did not spell out how it fared under Basel III capital rules, however.
The report said more banks, and other state firms, are expected to enter the market with the hybrid securities brought in by Mainland regulators in April.