22 September 2018

Banks can top up capital via China bond sales, CSRC says

China’s commercial banks will be able to more freely replenish their capital by selling domestic corporate bonds, the China Securities Regulatory Commission (CSRC) said in a joint statement with the China Banking Regulatory Commission on Friday, citing a set of new guidelines.

The new rules will streamline local fund raising for lenders and promote the development of the bond market, according to the statement posted on the CSRC’s microblog. 

Chinese banks listed in Shanghai, Shenzhen and offshore markets, or those ready to go public on local markets, can consider offering investment tools to boost reserves although they should rely mainly on internal supplies to replenish capital, the two regulators said.

Banks that want to issue corporate bonds through non-public platforms will only have to file documents with the CSRC instead of seeking regulatory approval, they said. 

– Contact HKEJ at [email protected]



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