The Bank of China (BoC) is expected to issue 40 billion yuan of convertible bonds in the next 15 days and to complete its financing plan on the H-share market within this year, said Li Lihui, president of the bank.
Li said that the Central Huijin Investment Corp., the bank's largest shareholder, did not subscribe to the convertible bonds due to the Central Huijin's reservations about its capital conditions and investment strategy.
The bank has fixed five underwriters for its Hong Kong rights issue plan, including BOC International, Bank of America-Merrill Lynch, CCB International, Credit Suisse, and ICBC International.
Responding to the rumor that the BoC has been required to purchase 20 billion yuan of central bank bills, Li said that the BoC did purchase the bills but that it was a voluntary investment by the BoC.
Li said that the BoC would control its credit growth to about 17 percent this year.
Li said that the risks in BoC's loans to the real-estate sector and the local government financing platforms are controllable.
As for the BoC's investment in European bonds, Li said that such investments has no risk exposure up to now and would not have a big impact on its financial performance. (Edited by Jiang Yujuan,
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