China’s Top State Banks to Raise $72 Billion as Profit Margins Shrink and Bad Loans Rise

Four of China’s biggest state-owned banks are planning to raise up to $72 billion by selling shares privately. This move comes after the government urged banks to strengthen their financial health so they can better support the economy.

Bank of Communications will raise around $16.5 billion through a private share sale to investors, including the Ministry of Finance. Meanwhile, Bank of China, Postal Savings Bank, and China Construction Bank also plan to raise large amounts — about 165 billion, 130 billion, and 105 billion yuan each.

Source: Bloomberg