Bank of China plans raising $3bln thru refinancing

Sources report bank's scheme to replenish capital likely to receive approval from regulator.

BOC is expected to announce the RMB 20-billion ($3 billion) fundraising plan in a shareholder meeting scheduled in March this year. The scope of the fundraising plan is smaller than the market expectation of RMB 100 billion.

Bank of China may obtain approval from the China Banking Regulatory Commission for its refinancing plan, as it will not affect the A-share market for a long time, analysts said in a report in China Knowledge.

In the past, BOC, Industrial and Commercial Bank of China, and China Construction Bank Corp were said to be allowed by Central Huijin Investment Ltd to replenish their capital with profits paid to the parent companies.

BOC President Li Lihui has expressed support for asset securitisation as a way of replenishing bank capital.