Embattled bank of jinzhou is set to become the first Asian bank to skip a payment on its offshore Additional Tier 1 securities, reminding investors of the risks associated with loss-absorbing capital instruments from smaller Chinese banks. Bank of Jinzhou said on September 1 its board had proposed cancelling the dividend on its offshore preference shares for one year from October 27 2018 to October 26 2019 as its capital adequacy ratios had fallen below regulatory requirements. Assuming shareholders approve, that would rule out the next payment, due on October 27.
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