Banking

Bank of Beijing may unveil fundraising plan

(Agencies)
Updated: 2011-04-08 13:22

BEIJING - Bank of Beijing, a city-focused lender, may announce a plan to raise funds via a share placement following a trading suspension of its shares, Reuters reported Friday, citing a Chinese newspaper's report.

According to the 21st Century Business Herald's report, Bank of Beijing is in talks with some of its shareholders regarding a fundraising plan. The report quoted an unidentified company source.

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The bank may bring in new shareholders in the process and the size of the fundraising has not been finalized, it added.

Bank of Beijing is working on a major proposal and hopes to unveil the plan as soon as next week, the bank said in a statement to the Shanghai Stock Exchange on Thursday.

Separately, official media reported that China's banking regulator was looking to curb heedless regional expansion by city commercial banks as it was concerned about their risk management capabilities.

"One incident could erode all the profits that the city commercial banks made in the past ten 10 years. City commercial banks should mind their own business," Yan Qingmin, assistant to the chairman of the China Banking Regulatory Commission, was quoted by the Shanghai Securities News as saying.