Shares in the Bank of Communications Co. slid 2.35 percent to end Monday morning trading at 6.24 yuan (0.91 U.S. dollars) in Shanghai after the bank announced a 33.1-billion-yuan rights issue to boost capital ratio.
The amount was lower than its initially planned 42 billion yuan, and the lender gave no reasons for the reduction.
In a statement filed to the Shanghai Stock Exchange late Sunday, the lender said the rights issue would be offered to shareholders at a 10-to-1.5 ratio applicable to both Shanghai A shares and Hong Kong H shares.
The issue comprised 3.89 billion A shares at 4.5 yuan each and 3.46 billion H shares at 5.14 Hong Kong dollars (0.66 U.S. dollars) each, said a statement from the bank.
The subscription period would cover trading days from June 10 to 21.
At the end of March, the capital adequacy ratio of the Bank of Communications, China's fifth largest lender by assets, was 11.73 percent, slightly higher than the regulatory requirement of 11.5 percent.
The amount was lower than its initially planned 42 billion yuan, and the lender gave no reasons for the reduction.
In a statement filed to the Shanghai Stock Exchange late Sunday, the lender said the rights issue would be offered to shareholders at a 10-to-1.5 ratio applicable to both Shanghai A shares and Hong Kong H shares.
The issue comprised 3.89 billion A shares at 4.5 yuan each and 3.46 billion H shares at 5.14 Hong Kong dollars (0.66 U.S. dollars) each, said a statement from the bank.
The subscription period would cover trading days from June 10 to 21.
At the end of March, the capital adequacy ratio of the Bank of Communications, China's fifth largest lender by assets, was 11.73 percent, slightly higher than the regulatory requirement of 11.5 percent.
