Bocom gets private placement approval

BEIJING -- 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 ($1.03 billion)?in yuan-denominated A-shares and HK$5.84 billion ($752.78 million)?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 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.