Ailing Chinese Bank Secures $1.7 Billion of New Capital

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Ailing Chinese Bank Secures $1.7 Billion of New Capital
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Bank of Jinzhou plans to raise $1.7 billion by selling shares to two state-backed buyers, including a subsidiary of one of China’s biggest “bad banks”

March 11, 2020 1:48 am ET

BEIJING—State-backed investors will shore up Bank of Jinzhou Co. with an injection of roughly $1.7 billion in fresh funds. The bank is one of a handful of regional lenders that have run into trouble as China’s economy cools and the government tries to crack down on financial risk-taking. Numerous banks extended credit to risky borrowers in recent years—while portraying many of them as healthy.

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