Bank of China gains approval for A-share issuance to ministry

Bank of China (SSE:601988) has received the green light from the China Securities Regulatory Commission (CSRC) to proceed with a targeted A-share issuance to its shareholder, the Ministry of Finance. The approval, detailed in a filing released May 23, allows the bank to strengthen its core tier-one capital. The issuance will be conducted in private and the related stock will be restricted from trading for five years after it is issued. Proceeds of the issuance will be used to to increase their core first-level capital and enhance their ability to provide financial services to the actual economy.