China to implement new capital requirement rules July 1 -report

SHANGHAI Feb 8 (Reuters) - China is planning to roll out new rules on banks' capital requirements July 1, as part of efforts to implement Basel III guidelines to help lenders rein in risks, a business daily reported on Wednesday.

The China Banking Regulatory Commission published in August a set of draft rules, which said major or systematically important Chinese banks would be subject to a minimum capital adequacy ratio (CAR) of 11.5 percent and others 10.5 percent.

The regulator said major banks would be given a grace period until the end of 2013 to meet the new requirements and other lenders until the end of 2016.

The 21st Century Business Herald reported that the new rules would go into effect July 1, citing unidentified sources.

The paper also reported Bank of Communications , China's fifth biggest lender, was working on new fundraising plans, although the timing and method had yet to be determined.

Shanghai Pudong Development Bank is planning to issue up to 30 billion yuan worth of bonds at the end of this month, IFR, a Thomson Reuters publication, reported on Wednesday.

China Minsheng Banking Corp Ltd said on Tuesday it will sell up to 30 billion yuan in bonds on the interbank market from Friday.

China's listed banks are expected to raise over 100 billion yuan through equity financing in 2012 as they face pressure to replenish capital due to rapid loan growth and tighter regulation, the China Securities Journal reported in December. (Reporting by Kazunori Takada and Samuel Shen; Editing by Jonathan Hopfner)