Chinese Banks Need $73 Billion To Recapitalize After Year Of Insane Lending

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China wanted a stimulus package in the form of frenzied lending and it got it. As we approach 2010, Chinese banks will need to re-up cash to meet capital requirements:

CCTV: Chinese banks will need to raise as much as 500 billion yuan ($73.2 billion) from the capital market next year to beef up their capital reserves after a lending boom this year, according to a Financial Times report Monday, citing Li Fuan, an official from the China Banking Regulatory Commission (CBRC).

His comments were the first official acknowledgement of China’s banks needing to fundraise to replenish capital.

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