Mainland banks lobby for dim sum quota

Since China’s vice-premier Li Keqiang and People’s Bank of China governor Zhou Xiaochuan unveiled new measures to encourage offshore renminbi bond issuance last week, mainland banks have been lobbying for their portion of the Rmb50 billion $7.8 billion dim sum bond quota set for the rest of 2011.

The new quota, which is to be split evenly between mainland companies and financial institutions, is said to have come as a surprise and has put a squeeze on Chinese banks’ funding plans.

Agricultural Bank of China, Bank of Communications, China Construction Bank, Bank of China and ICBC are all each said to have put in applications to raise...