BBVA to Buy Shares in CITIC

BBVA, the third largest shareholder of China CITIC Bank, will spend about 4 billion yuan on buying shares in a rights issue scheduled for next year, BBVA Asia Pacific director Manuel Galatas said.

CITIC Bank plans to raise 26 billion yuan in the rights issue to replenish its capital base. In late 2009, China's banking regulator raised capital requirements for commercial banks, sending banks scrambling for more capital.