Banks Said to Be Preparing to Issue Preferred Shares

(Beijing) – Many banks have been preparing to issue preferred shares, pending the approval of financial regulators including the China Securities Regulatory Commission, a source from Central Huijin Investment Ltd. says.

As the controlling shareholder of the Big Four state-owned banks, Huijin reportedly has opposed the issuance of preferred stocks for fear of losing leverage in the banks. But the source said these reports are not true because Huijin can offset the impact by acquiring the preferred shares.