China SOE Banks to Capitalize Affiliates: Times

China's five major state-owned banks are planning to inject capital into affiliated Asset Investment Companies (AIC) to satisfy regulatory needs to raise capital adequacy ratios from 2-3% to 5% this year, the Securities Times reported citing industry sources. According to the report the ratio will then increase to 6% in 2021 and 8% by 2022. The new regulatory standards will tighten banks' capital as AIC's main debt-for-equity business consumes capital, the newspaper said citing industry insiders. The current risk weight of 400% for non-public company equity and 250% for public company equity will not change, the Times report said.