Commerce & Finance Law Offices has advised China Construction Bank (CCB) on a private placement of A-shares to the Ministry of Finance (MoF) on 23 June, raising RMB105 billion (USD14.64 billion) to supplement its core tier 1 capital.
Commerce & Finance partner Hou Qinghai led the project team providing comprehensive legal services for CCB, which is the second-largest bank in China and partially state-owned. CITIC Securities and Guotai Haitong were the joint sponsors, while the joint underwriters included China International Capital Corporation (CICC), CSC Financial, Huatai United and GF Securities.
This fundraising marks the successful completion of the MoF’s capital replenishment plan for banks of more than RMB500 billion, and is an important part of the “package of incremental financial policies”.
Earlier in March, the MoF announced plans to issue the first batch of RMB500 billion in special government bonds this year to support the core tier 1 capital of Bank of China (BOC), China Construction Bank, Bank of Communications (BOCOM) and Postal Savings Bank of China (PSBC).
In the 10 days leading up to this issuance, BOC, BOCOM and PSBC all completed their A-share placements, raising RMB165 billion, RMB120 billion and RMB130 billion, respectively.
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KWM advises BOC, BOCOM on RMB285bn A-share issuances
Bank of China (BOC) and Bank of Communications (BOCOM) have completed targeted equity offerings, raising a total of RMB285 billion
Jia Yuan counsels PSBC on RMB130bn A-share issuance
Postal Savings Bank of China (PSBC) has completed an A-share issuance, raising RMB130 billion with Jia Yuan Law Offices advising on the transaction
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