China's government plans to tighten the capital of banking to reduce the liquidity of credit contributing to 60% rally in the capital market.
China Banking Regulatory Commission (CBRC) has submitted a draft of rule changes to the banking on 19 August 2009. The banking is asked to give a response until 25 August.
As a result of this policy, bank may reduce credit or release stocks to raise the minimum capital adequacy ratio to be 12%.
China's stock exchanges have bearish this weekend, in the middle of the government's efforts to reduce the credit that now exceed U.S. $ 1 trillion in the first semester.
Hang Seng Index in Hong Kong down 0.6% at 1600 local time after rising 0.5%. The Shanghai Composite Index rose 1.7%,and closed at 2.960.77 position.
Chinese bankings have sold 236.7 billion yuan (U.S. $ 34.6 billion) on the subordinate bonds this year, or nearly three times to the number of published in 2008.
