The Bank Refinancing Scheme Is Heavily Approved And Implemented At A Time Or Later.

In May 19th, the industrial and Commercial Bank of China (601398) shareholders' meeting adopted a motion that does not exceed 25 billion of A shares convertible bonds and shares that do not exceed 20% of the H-share capital.

On the same evening, Industrial Bank (601166) issued a notice that the rights issue plan has passed the approval of the SFC.

In the evening of May 20th, the SFC announced that it would consider the application of the Bank of China (601988) issuing convertible bonds of 40 billion A shares in May 24th, and the refinancing scheme of the Bank of China, which is in urgent need of refinancing, has entered the stage of practical operation.

The refinancing schemes launched by various listed banks have now entered a period of intensive approval.

A shares under pressure or reduction

In May 20th, Beijing Bank (601169), which did not disclose the refinancing scheme, announced that it would issue 10 billion subordinated debt, and said it was preparing for refinancing.

Since the second half of 2009, the refinancing of listed banks has always been the focus of market concern. Although some joint-stock commercial banks have completed refinancing, the biggest worry for the market is the financing of large state-owned banks.

From the refinancing scheme that has been announced, the total financing of the four banks in the A share market is about 90 billion yuan.

In early 2010, Bank of China first announced its refinancing plan.

Subsequently, the Bank of China's shareholders' meeting also approved its issuance of not more than 40 billion of A convertible bonds, and unified issuance of shares not exceeding 20% of H-share equity.

The Bank of Communications (601328) has also thrown out a refinancing scheme in a timely manner, with no more than 42 billion yuan in A and H-share refinancing.

In April 23rd, A and H of the Bank of Communications issued the approval of the China Banking Regulatory Commission.

During the bank's release of its refinancing scheme, the major shareholders of Bank of communications, the Ministry of finance, HSBC Holdings and the capital airport actively participated in the rights issue.

Public information shows that in the total share capital, A shares account for 53% and H-shares account for 47%.

In the 42 billion yuan allotment fund, A and H share 22 billion 300 million yuan and 19 billion 700 million yuan respectively.

Analysts' calculations show that the amount needed to be removed from the A share market is only about 11 billion yuan.

In April 30th, the Construction Bank (601939) announced a refinancing scheme, and A and H reissued the rights issue by no more than 75 billion yuan.

According to public information, the A shares of the Construction Bank will be allocated 630 million shares, while the H shares will be allotted 15 billion 728 million shares.

Refinancing time or delay

If the SFC passes the application of the Bank of China, the Bank of China will be looking for the right time to refinance the four largest banks with a capital adequacy ratio.

There is a market rumor that the four major bank refinancing is bound to be completed in 2010. Although the stock market is affected by multiple factors and is in a downward channel, the rise and fall of the stock market will not be a prerequisite for the refinancing of the big state-owned banks.

However, Guo Shuqing, chairman of the Construction Bank, said in a media interview that the Construction Bank's refinancing scheme was postponed to the end of this year or early next year, depending on the market situation, and there is no fixed timetable.

In the recent shareholders' meeting of ICBC, Jiang Jianqing, chairman of the board of directors of the ICBC, also said that when the market was better, refinancing would be considered.

The two chairman's position or temporarily let the market breathe a sigh of relief.

Fu Lichun, an economist at the Academy of Social Sciences, pointed out that the implementation of the new property policy plus the troubles in the euro area and various factors have led to the recent downturn in the A share market and the peripheral market.

The listing of the Agricultural Bank is also advancing without delay. The market is expected to be listed in two places in July.

This is also a problem for the big bank's refinancing in the choice of the time point. If the refinancing and the Agricultural Bank's listing are going on in succession, then the two markets are hard to bear so much pressure. The time for the refinancing of the state-owned big banks may be concentrated in the fourth quarter of 2010 and the first quarter of 2011.