China Construction may reschedule $11bln financing plan

Lender considers moving rights issue early next year behind uncertain market conditions.

China Construction Bank Corp, one of the country's Big Four state-owned commercial banks, may put its financing plan off until the beginning of next year, due to the uncertainty of the current market conditions, the Reuters reported last week, citing Guo Shuqing, president of the bank, as saying.

Reportedly, the Chinese lender plans to raise as much as $11 billion via a rights issue to boost its capital base.

Guo said CCB aims at a 15% increase in newly-added loans for this year, less than its predefined target of 17%. The bank's net interest margin is likely maintained at 2.4% this year, whereas the figure was 2.39% by the end of last year, he added.

CCB's nonperforming loan ratio will continue to drop this year, said Guo.

View the full story in China Knowledge.