Chinese financial stocks soar on preferred issuance plans

|By:, SA News Editor

A gauge of financial companies soared 6.7% on rumors Chinese banks will be allowed to issue preferred stock to boost capital levels. Shanghai Pudong and Agricultural Bank each jumped 10% on speculation they will be the first to participate in a trial offering.

Separately, Ping An Bank gained 10% after announcing plans to raise $2.4B by selling  1.32B shares to parent Ping An Insurance Group. The purchase will raise the parent's stake to 59% from 52.4%.

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China financial ETF: CHIX.

China ETFs: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP.

Chinese banks: BACHY.PK, CICHF.PK, IDCBF.PK, CIHHF.PK.