Wednesday, December 14, 2011

China Everbright Bank plan to issue $ 7 billion subordinated debt nbsp; banks reckless debt expansion

Like many companies into funding strand crisis, Bank this year are also frequently proposed that "the bond" falls, however, the bank bond issue is not the purpose of life insurance, but expansion.  12th late, Everbright Bank (601,818) publishing notice, announced intends issued scale does not over Yuan 7 billion yuan of secondary bond. This is the line following h IPO plans stranded Hou, made of and a pen more mass of financing plans. a brokerage analysis persons to economic leader reporter said, this and Everbright Bank tension of funds surface about. its three quarterly display, the line core capital adequate rate for 8.24%, below 8.5% of regulatory "red line". However, the huge financial pressure has difficulty in retaining China Everbright Bank's pace of expansion. its subordinated debt announcement the day before (11th), China Everbright Bank opened its branch is opened in Zibo, Shandong. According to the Herald reporter statistics, the Bank has been opened in Hebei, Shanxi, Jiangsu and secondary branches up to 12
Home is the rapid expansion of trend. in another development, the Everbright private banks will also be established in the end of December, the first batch of presence and 4 in Beijing, Shanghai, Hangzhou, Taiyuan City. it does not make people suspect that behind the Bank frequently issue bonds, its real plans for that?  Finance-expansion-re-issuance, successfully landing a shares raising $ 21.7 billion in funds, just over 1 year and 3 months, China Everbright Bank back into the cash-strapped situation.  12th night, China Everbright Bank in a statement made clear that the raised funds will be used to enrich the subsidiary capital, improve capital adequacy ratios to meet regulatory requirements. "China Everbright Bank shares, funds have not been effective in improving, frequently touching regulators set the ' red line '. especially after h-share IPO plan ran aground, the Bank's funds greater pressure." South China brokerage analysts on Herald reporters until the end of September this year, the Bank's capital adequacy ratio is higher than the regulatory base line just 0.4
3%, the core capital ratio was below the supervision of 8.5% "red line", only to 8.24%.  The source said, China Everbright Bank funding has not improved, or associated with their rapid expansion of the last two years.  Leader reporter statistics found, only this year Everbright Bank on in Shandong, and Fujian, and Hebei, and Jiangsu, and Anhui, 12 province established has 13 home II level branch, which Hebei exclusive two home, respectively for Handan branch and Langfang branch, rendering high speed expansion situation. While, leader reporter and was informed that, the line is heavy Kai private bank business, early has decided in Beijing, and Shanghai, and Hangzhou and Taiyuan 4 City pilot. "Branch, private business networks established early, and requires significant capital investment, will reduce its capital targets. regulatory based on risk considerations, capital standards have been raised to financial institutions, banks need to finance again, supplementary capital." Wang Changling, Associate Professor School of Renmin University of China financial wizard
Newspaper reporter said.  However, for various reasons, China Everbright Bank cannot implement h-share IPO in the plan, only by way of subordinated debt easing financial pressure to enter the "financing-funds-re-issuance-expansion expansion" situation.  As with many companies cash-strand crisis, banks are frequently held up this year, "bond" the flag, however, banks issue is not the purpose of life insurance, but expansion. Super 1 time last year the total bond "fact Everbright Bank rather than the exception."  Wang Changling said, under the influence of monetary policy this year, banking spreads widening business to improve, increased profits, row took the opportunity to "Happy Valley enclosure", and wishes to reap more benefits. According to statistics, in unlisted Bank, a number of city commercial banks this year new bodies established outside the local increase in volume, one bank, Bank of Shanghai, Dalian, Hangzhou Bank in the top three, set up branches respectively at 8, 7, 5. listed banks even

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