IN BRIEF (Page 5)

Rules on capital replenishment eased

China released a revised guideline on Friday for commercial banks on the issuance of preferred shares to replenish Tier-1 capital, a bank's core capital that includes its equity capital and disclosed reserves. Under the revised guideline, unlisted banks that have a total of more than 200 shareholders may issue preferred shares without having to get listed on the National Equities Exchange and Quotations, a Chinese over-the-counter system for trading the shares of small-and mediu-msized enterprises, as long as they meet the requirements for the issuance of preferred shares and prudent regulation. The revisions aims to raise the level of capital adequacy so that banks are able to increase the issuance of loans to better support the real economy.

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