Capital moves factored in, says fund

HONG KONG: Potential capital-raising plans have been factored into current valuations of major Chinese bank shares, said a portfolio manager with Neuberger Berman on Wednesday.

The independent fund manager said it had cut its exposure to Chinese banking stocks in August, when talk of likely increases in bank capital ratios began to circulate.

China's banking regulator wanted large state lenders, including Bank of China, to raise their capital adequacy ratios after a lending boom this year, a source with direct knowledge of the matter told Reuters earlier this week.