China Citic Bank to issue 25 billion yuan in bonds

POLITICAL ECONOMY

2010 key year for China to overcome crisis: bank governor
Beijing (AFP) Dec 31, 2009 - China's central bank governor said Thursday that 2010 would be a key year in the nation's battle to overcome the financial crisis and pledged a relaxed credit policy to boost economic recovery. "To handle financial macro-economic adjustments well will be of great importance in effectively warding off the attacks of the global financial crisis and solidifying the basis of economic recovery," Zhou Xiaochuan said. In the coming year, the People's Bank of China will maintain its moderately easy monetary policy, but will also make its policy more flexible, he said in a New Year's message to bank employees posted on the central bank's website. In 2010, more credit supports would be channeled toward job creation, strategic emerging industries and towards the upgrading of industries, he said. The bank will also offer financial support to areas of the economy that promote the expansion of domestic demand, aid the agricultural sector and help China move towards sustainable development, he said. "2010 will be a key year to solidify the economic recovery and overcome the international financial crisis," Zhou said.

by Staff Writers
Shanghai (AFP) Dec 31, 2009
China Citic Bank said Thursday it plans to issue 25 billion yuan (3.66 billion dollars) in subordinate and hybrid bonds in 2010 to beef up its capital base.

The medium-sized lender, in which Spain's second-biggest bank BBVA Group holds a 15 percent stake, said its board approved the debt issue plan on Wednesday, according to a statement filed with the Shanghai Stock Exchange.

No further details were provided in the statement.

China's banking regulator has urged banks to boost their capital adequacy ratio -- the amount of capital banks must hold against their risk -- amid concerns rampant lending will lead to a sharp rise in bad debts.

New bank loans reached 9.2 trillion yuan in the first eleven months of 2009 as banks heeded Beijing's calls to pump money into the world's third largest economy, and new lending is expected to remain high next year.

The capital adequacy ratio of Citic Bank was 11.24 percent at the end of September, higher than the minimum ratio of 10 percent set by the regulators but much lower than 14.32 percent recorded at the end of 2008.

The regulatory body has previously warned banks that it will impose curbs on banks' business expansion unless they strengthen their defences against bad loans as Beijing tries to put the brakes on the record lending.

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POLITICAL ECONOMY

Japan's Mitsubishi UFJ to issue yuan bonds in China
Shanghai (AFP) Dec 28, 2009
Bank of Tokyo-Mitsubishi UFJ said Monday it plans to issue yuan-denominated bonds in China early next year after becoming the first foreign commercial bank to obtain government approval. The Japanese bank, which was given the green light by China's banking regulator on Thursday, will issue one billion yuan (146.4 million dollars) in bonds on the interbank bond market through its Chinese unit ... read more

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