China banks may lack capital

China’s four largest banks could face a capital shortfall of 480bn yuan ($70.3 billion) over the next five years, Industrial and Commercial Bank of China President Yang Kaisheng said yesterday. It will be difficult for banks to rely exclusively on raising money in markets for replenishing their capital, Yang said, though he did not mention any alternatives. Some analysts think the government, which bolstered the country’s biggest commercial lenders through aggressive recapitalisation over the past decade, will need to inject more cash into them.