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BOC shares drop after Reuters report on mega-fundraising plan 11.23.2009 Reuters was first to report on Nov 23 that Bank of China was in talks with investment banks to raise money to meet possible new capital guidelines, in what could be a roughly $15 billion fundraising effort. Hong Kong-listed shares of Bank of China sank over 4 percent on the news the following day, also contributing to 1.6 percent fall of the Hang Seng Index. Bloomberg was forced to run a story about Bank of China, citing the Reuters report, on the front page of Bloomberg.com a day later. The report of Bank of China seeking fresh funding has set the agenda for international media this week, with major financial newspapers developing the story into the need for capital boosting measures by the big Chinese banks. Bank of China issued a statement in the following day that it was studying various options for fund-raising though no plan could be disclosed at this moment. MARKET IMPACT Shares of Bank of China sank over 4 percent on the news the following day The Hang Seng Index fell 1.6 percent Reuters Firsts will need at least flash player 9 to give you the full experience. The latest Flash player can be downloaded here	firsts across any industry Commodities & Energy Energy, metals, agricultural and environmental markets FX & Money Markets Macroeconomics, monetary policy, FX and money markets Politics & Risk Politics and political risk Equity & Derivatives Companies, sectors, M&A and the financial industry Fixed Income Sovereign and corporate debt, credit, and ratings firsts by region Americas View stories from this region Europe / Middle East / Africa View stories from this region Asia View stories from this region Emerging Markets View stories from this region

Equity & Derivatives

Companies, sectors, M&A and the financial industry

BOC shares drop after Reuters report on mega-fundraising plan

11.23.2009

Reuters was first to report on Nov 23 that Bank of China was in talks with investment banks to raise money to meet possible new capital guidelines, in what could be a roughly $15 billion fundraising effort. Hong Kong-listed shares of Bank of China sank over 4 percent on the news the following day, also contributing to 1.6 percent fall of the Hang Seng Index. Bloomberg was forced to run a story about Bank of China, citing the Reuters report, on the front page of Bloomberg.com a day later. The report of Bank of China seeking fresh funding has set the agenda for international media this week, with major financial newspapers developing the story into the need for capital boosting measures by the big Chinese banks. Bank of China issued a statement in the following day that it was studying various options for fund-raising though no plan could be disclosed at this moment.