Citic Bank Shareholders Approve Yuan Bond Sales in Hong Kong

(Updates with Merchants Bank offer in fourth paragraph)

Oct. 19 (Bloomberg) -- China Citic Bank Corp., the banking unit of the nation’s largest state-owned investment firm, said shareholders approved the lender’s plan to sell as much as 30 billion yuan of yuan-denominated bonds in Hong Kong.

The bank said 99.98 percent of shareholders approved the plan, according to a Hong Kong stock exchange filing today. The bonds, with maturities of as long as 5 years, will help the bank grant loans and will increase working capital, according to a separate statement on Aug.29.

Citic Bank gained 2.3 percent to HK$3.56 in Hong Kong trading today.

Rival China Merchants Bank Co. said on Oct.17 that it had received approval from the China Banking Regulatory Commission for a planned rights offer. It plans to raise as much as 35 billion yuan.

--Editor: Joshua Fellman

To contact the editor responsible for this story: Marco Lui at mlui11@bloomberg.net