BOC 40 billion convertible for half month

The bank's refinancing plan has a clearer timetable.　　Lihui, the bank's president, said yesterday that the bank's 40 billion-yuan a-share convertible bond would be expected to be completed in the next half month, and H-shares would be completed within the year. For half a month to complete the issuance of convertible bonds Lihui was held yesterday in the 2009 annual meeting of the Bank of the above information disclosed.　　He said that the 40 billion convertible bonds hope to launch the market as soon as possible, for the next half month to carry out specific issues, the specific release time will be announced as soon as possible to the market.　　As for why the large shareholder Huijin does not participate in the convertible bond subscription, Lihui said Huijin is a major shareholder and also the subject of decision-making, believing that Huijin takes into account its own capital and investment strategy.　　BOC's plan to issue no more than 40 billion convertible bonds in a-shares was approved by the SFC on 24th night, and BOC 40 billion will be the largest convertible bond issue in China's capital market and will be the largest refinancing. As for the progress of the H-Share financing scheme, BOC chief Zhang Bingxun said that there is still further research and there is no further information to disclose.　　However, according to Hong Kong media, Lihui said after the meeting that he hoped the BOC H-share financing could be completed within the year.　　It is now known that BOC International, Bank of America Merrill Lynch, CCB International, Credit Suisse and ICBC International five underwriters have been selected for its H-share financing. The bank's new loan scheme has been a subject of concern in the 17%-year loan growth control, which was the first of the new loans in 09.　　The same as the other yesterday, there are rumors that BOC was asked to buy more than 20 billion of the central bank vote.　　Lihui after the media admitted that the bank did buy the central vote, but said this is the bank's active investment behavior.　　Lihui at the meeting explained that last year, the bank's loans increased faster, mainly in response to the country's need to revive the economy, in 2009, the bank's new loan increase of 49%. This year, the macro-policy shift to fine-tuning, but still implement a moderately loose monetary policy, but more emphasis on moderation. As a result, Lihui said the increase in bank lending this year is expected to be controlled by around 17%. He said that although the increase compared to the 2009 decline, but compared to 2006-2008, the growth rate is very high.　　Such growth, he argues, is sustainable and can lead to more profits. He believes that this year, the bank's net income difference and non-interest income compared to 2009 years will have a certain growth.　　This year has been reflected in the 1 quarter, while BOC will increase the utilization of resources, control the cost of income, control the cost of risk and so on.　　Real estate, local financing platform loan risk controllable on the current market more worried about real estate and local financing platform loan risk problem, Lihui expressed risk controllable. The bank recently completed a stress test on home mortgages, which included mild, moderate, and severe stress tests, with house prices down 10% and benchmark interest rates up 27 points considered mildly stressful; house prices fell 20%, benchmark interest rates increased 54 basis points to moderate pressure; house prices fell 30%, the benchmark interest rate increased by 108 basis for heavy pressure. According to the test results, Lihui said that even if the heavy pressure on BOC-related real estate loans will not have a significant impact, the Bank of the public real estate loans and personal housing mortgage loans in total over 1 trillion, he said, under heavy pressure,　　The bank's real estate loan non-performing rate will increase by about 1.2%, however, the corresponding bank will increase the provision of billions of, the bank's financial performance will not have a big impact. As for local financing platform loans, Lihui said, according to the bank's own statistics, as at the end of 2009, the bank's local financing platform loan balance of 424.3 billion yuan, compared with the beginning of 2009 more than 280 billion, to provinces and cities, the city level accounted for about 92%, mainly to the development of the park, local land reserve Urban rail transit, water and electricity construction, the 1 quarter of this year, the bank's local financing platform loans will increase.　　By the end of 2009, the proportion of non-performing loans was only 0.05%. Last year, the bank has organized checks on the quality of local financing platform loans, this year, according to the CBRC's request to the local financing platform for loans to open a check, to the local financing of the loans, the bank is to increase the number of borrowers, increase the security subject, increase collateral to arrange these loans, This arrangement will not be completed until one months.　　Lihui said, at present, BOC's local financing platform loan risk controllable.　　In addition, he revealed that the bank held five of the European debt crisis more serious countries with only hundreds of millions of U.S. dollars, and the bank in the first quarter compared to the end of last year to reduce the number of this part of the bond and gain some income, in the current analysis, he believes that the part of the bond risk. According to him, BOC's total European bonds accounted for more than 20% of the bank's foreign currency bonds, and BOC's evaluation concluded that its risk of European bonds was controllable and would not have a significant impact on BOC's financial performance.