Chinese commercial banks face lack of capital

Analysts say China's listed banks need to raise up to $44bln in 2010.

First-quarter reports by five joint-stock banks, the second rung of China's bank industry ladder after the five biggest state-owned banks, have revealed that behind the rapid growth in net profits, capital adequacy ratios have fallen. Some banks have dipped below the regulatory capital requirement.

In April 28, China Citic Bank filed their first-quarter report to the Shanghai Stock Exchange.

China Merchants Bank, the country's sixth-largest lender, reaped 5.91 billion yuan ($866 million) in net profit, ranking the first among the five joint-stock banks. China Citic Bank posted 4.08 billion yuan ($597.6 million), coming second. Industrial Bank registered 4.079 billion yuan ($597.45 million), followed by Shenzhen Development Bank with 1.58 billion yuan ($231.42 million) in net profit, and the Bank of Ningbo with 498 million yuan ($72.94 million).

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