China Minsheng Banking Corporation (600016,1988.HK) won the approval of the China Securities Regulatory Commission to issue up to 1.65 billion H shares, reports China Business News, citing a company filing.

Minsheng Bank had planned to raise a total of 29 billion yuan, of which the issuance of A share convertible bonds will account for 20 billion yuan, while nine billion yuan will be raised through the issuance of 1.65 billion H shares.

Through end June 2011, the bank had capital adequacy ratio of 10.73 percent, up 0.29 percentage point from the end of 2010, while the core capital adequacy ratio was down by 0.32 percentage point to 7.75 percent.

According to an insider at Minsheng Bank, the success of the fund raising plan could raise capital adequacy ratio to 12 percent, sufficient for its business development needs for the next three years.

Based on its capital management guidelines, the bank targets to record a capital adquacy ratio of not less than 10.5 percent over the next three years, while core capital adquacy ratio will not drop below 8.5 percent.

Source:capitalvue.com