Bank of Communications receives private placement approval

The Bank of Communications, China's fifth largest lender by assets, said it has gotten the nod from regulators to complete its private share placement.

In a statement filed to the Shanghai Stock Exchange, the lender said the country's securities authority has approved its plan to issue 6.54 billion yuan in yuan-denominated A-shares and 5.84 billion Hong Kong dollars in Hong Kong dollar-denominated H-shares.

The Shanghai-based bank said in a March statement that it aims to raise 55.6 billion yuan (8.98 billion U.S. dollars) to replenish its core capital by offering new shares to its existing shareholders through private placement.

Twelve institutional investors, including the Ministry of Finance and the National Social Security Fund, will take part in the private placement, according to the March statement.

The Shanghai Securities News reported last month that after the placement, the Ministry of Finance will hold a 26.53-percent stake in the lender, while the National Social Security Fund's stake will stand at 13.88 percent.