BOC to issue 20 billion RMB bonds in HK

Bank of China (601988) January 29 announced that the bank in Hong Kong before the end of 2012 issued a total size of not more than 20 billion yuan in the bill was approved by a special shareholder meeting. The bill was approved by the Board of Directors of the company at the end of last year.　　Lihui, president of BOC, said that capital demand and the relatively low financing costs of the Hong Kong bond market were the main reasons for BOC's choice to issue debt in Hong Kong.　　It is understood that from September 8 to September 24 last year, the Bank of China in Hong Kong to the local public issued 5 billion yuan of renminbi bonds, the bond is considered to be the first time the Non-bank institutional investors to participate in the public issue of renminbi bonds. According to BOC Quarterly, as of the end of September 2010, the bank's capital adequacy ratio is 11.73%, core capital adequacy ratio is 9.35%. With regulators likely to continue to raise capital requirements in the future, analysts believe BOC's current debt issuance is an early response to higher capital requirements.