Chinese smaller lenders rush for preferred shares

Mid- and small-sized Chinese banks, under capital pressure, are looking to issue preferred shares, following the lead of large state-owned groups that are aggressively raising funds in capital markets.

China Citic Bank and China Guangfa Bank are the latest to look to preferred shares, and are close to drawing up proposals for issuances, according to two sources close to the companies.

The size of their proposed issuance could be Rmb15 billion to Rmb20 billion for each bank. However, the banks need to discuss the matter with regulators before formally announce their plans so that the timetable and the size are yet to be confirmed, the sources told...