China’s Latest Regional Bank Rescue May Cost $14 Billion (1)

Struggling Chinese regional lender Hengfeng Bank Co. may just have received a $14 billion rescue package.

The Shandong-based lender sold 60 billion new shares to Central Huijin Investment Ltd., a unit of China’s sovereign wealth fund, 36 billion shares to Shandong Financial Asset Management Co. and 4 billion shares to United Overseas Bank Ltd. and other investors, it said in a statement.

While the price of the shares wasn’t disclosed, Singapore’s UOB said it paid S$360 million ($266 million) in buying 1.86 billion shares in the deal, putting the rescue package at $14 billion if the others paid the ...