Chinese sovereign fund may not support bank fundraising

Discussion in 'Wall St. News' started by ASusilovic, Dec 8, 2009.

  1. HONG KONG/SHANGHAI, Dec 8 (Reuters) - Shares in China and
    Hong Kong declined on Tuesday, with banks leading losses, on
    concern over more share issues and comments suggesting mainland
    banks may not receive government help to boost their capital.


    The official Securities Times quoted a senior official at
    Central Huijin, an arm of Beijing's sovereign wealth fund, as
    saying that it would not reinject dividends it receives from
    China's four biggest state-owned banks to ease pressure on them
    to raise funds.

    Chinese banks are expected to turn to capital markets to
    raise funds and replenish capital after a lending spree in the
    first half of the year spurred worries about rising risk.