China Expands Bank Financing With Preferred Stock Trial

China issued rules for a trial program allowing companies to sell preferred stock, expanding financing options for the nation’s banks as they seek to address tougher capital requirements.

Companies can issue the shares if they are included in the Shanghai Stock Exchange 50 A-Share Index, the China Securities Regulatory Commission said in a statement on its verified microblog account yesterday. Publicly traded companies can also issue preferred stock to pay for acquisitions and buy back shares, the CSRC said.