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Banks need to raise capital because.....>

CHINA PRESS
CHINA PRESS: Banks need to raise capital because of interest-rate differentials,
asset quality and increased government supervision, the Economic Information
Daily reported Thursday. Some banks are issuing convertible bonds -- and total
issuance may rise to CNY125.2 billion, the report said. Banks must increase
asset growth at a 13% year-over-year pace to maintain leverage levels and for
the country to maintain a 6.5% GDP growth rate, according to the Bank of China's
Finance Research Institute's Xiong Qiyue. However, this will be difficult in the
current environment and pressure on banks is increasing as the growth rate of
capital is slower than that of assets. The government's deleveraging campaign,
macro-prudential assessment, a clampdown on illegal practices in interbank
certificates of deposits and bank's wealth-product management are making banks'
need for capital replenishment more urgent. (Economic Information Daily)

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