March sell-off in Chinese AT1 bonds raises concerns

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By Addison Gong
09 Apr 2018

China’s Harbin Bank Co, which has been eyeing the offshore market for additional tier one capital for more than a year, has asked its shareholders for another year to complete the issuance. Its announcement comes as such bonds from the country’s lenders are taking a battering in the secondary market.

The bank said in a Hong Kong Stock Exchange filing on Friday, April 6, that it is seeking shareholders’ approval to extend the validity period of its planned up to Rmb8bn ($1.2bn) offshore AT1 issuance by 12 months.

The transaction has been a while in the making. Harbin Bank’s ...

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