Hong Kong stocks slid, with the benchmark index capping the biggest decline in almost a month, after data showed China’s new credit fell in March from a year earlier and money supply grew at the slowest pace on record.
Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. won approval to change how capital ratios are calculated, in line with international standards, as regulators seek to ease financing constraints for the country’s biggest banks.
Industrial & Commercial Bank of China Ltd. and its competitors are poised to issue preferred shares as soon as this year to shore up finances as slowing profit growth curbs their ability to retain earnings as capital.
Hong Kong stocks rose, with a gauge of Chinese shares extending its biggest weekly gain since November. China Construction Bank Corp. gave the biggest boost to the market after beating profit estimates.
Oversea-Chinese Banking Corp. offered HK$38.4 billion ($5 billion) to buy Wing Hang Bank Ltd. in the biggest takeover of a Hong Kong lender since 2001 to gain a foothold in the expanding Chinese financial hub.