Bank of China Plans Huge Capital Boost

potentially, Inflatable Pool Slide It will like be join by an expect IPO from Everbright Bank and. secondari offer from China' second-ti banks, which also aggress made new loan last year to the detriment of their capit position, which also lent aggressively.

the first major Chines bank to move aggress to shore up it balanc sheet follow a lend bing that ha rais concern about the long-term health of the Chines bank sectorBEIJING Bank of China is seek to rais ten of billion of dollar in new capital..

which could rais almost $30 billion base on the shares' Fridai close prices. The Beijing-bas bank also said it plan to issu as much as 40 billion yuan $6 billion of bond convert into Class A shares,Bank of China said in a statement Fridai that it plan to seek sharehold approv for a mandat to sell new share amount to not more than 20% of it exist Hong Kong- and Shanghai-list shares. which ar trade on China' domest markets.

make it the envi of larg economi around the world,China' bank sector made 9.59 trillion yuan in new loan last year as the kei element of Beijing' stimulu program. While that allow the country' full-year gross domest product to grow by 8.7%. the unpreced credit expans ha rais concern about how mani of those loan will turn bad in come years.

the bank regul ha been push bank to increas the amount of capit thei hold against their loans,In response. a ratio that ha been slide as banks' lend ha grown. With bank expect to issu a further seven to eight trillion yuan in loan thi year, banks' capit need ar like to build.

have ramp up it lend particularli aggress in the first half of the year. Dure that period it new loan increas 38% from the end of the previou year,A nalyst sai Bank of China wa alwai like to be the first of China' big four bank to return to the equiti market. much faster than the 20% growth post by Industrial & Commerci Bank of China Ltd. and China Construct Bank Corp. Bank of China manag a slight gain in it share of China' domest loan market over the period, accord to the bank' half-yearli financi report, although that came at the expens of it capit position.

have ramp up it lend particularli aggress in the first half of the year. Above,A nalyst sai Bank of China wa alwai like to be the first of China' big four bank to return to the equiti market. a branch of the Bank of China Ltd. in Shanghai, China.

close to the minimum 11% Beij requir of larg banks,It capital-adequaci ratio wa 11.63% at the end of September. and less than ICBC and CCB, which were both abov 12%. Analyst sai those bank mai not have to sell new equiti unless the regul further rais the capit requirements.

a person familiar with the situat told Dow Jone Newswir on WednesdayBank of China last week order it credit offici to halt ani new yuan loan due to excess fast lend growth so far in January..

Bank of China said the plan to rais capit ha been approv by the board but requir approv from shareholders,In a statement post on it Web site Friday. who ar expect to meet in March to vote on the plan.

support a steadi profit growth and maxim shareholders' interests,"To achiev a long-term develop strategi and meet the increasingli strict regulatori requir Bank of China need to replenish it capit in a time manner to improv it overal competitiveness." the bank said in a separ statement post on it Web site.

analyst predict 2010 could be the biggest year for new fund rais from China' bank sinc Bank of China and ICBC rais ten of billion of dollar in 2006Whil Bank of China' two major rival mai steer clear of the equiti market thi year..

the onli on of the big four bank not publicli traded,A gricultur Bank of China Ltd.. is await approv for an initi public offer that is expect to happen thi year.