Pudong Bank shareholders vote to support fundraising plan

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Shareholders in Shanghai Pudong Development Bank have voted to back plans to sell new shares, it has been reported.

According to Reuters, the fundraising plan will boost the institution's capital base and raise up to 20 billion yuan (AU$1.43 billion), contradicting an announcement last month that it planned to raise 25 billion yuan - down from an initial 40 billion yuan.

Bank chairman Ji Xiaohui told a meeting of shareholders that market conditions would dictate the timing of the plan and all proceeds from the sale would be utilised to boost Pudong Bank's capital adequacy ratio.

Earlier this month, Ji told Reuters that the bank would not require another fundraising initiative for another three years.

The bank became the first shareholding commercial bank to be listed with the approval of both China's Central Bank and Securities Regulatory Commission. By 2004, it had assets totalling 455.53 billion yuan.