Bank of China is considering a new share sale in Hong Kong to raise

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capital, according to analysts briefed by the bank Monday.

The bank, the largest foreign exchange lender in China, said Friday that it would issue as much as 40 billion renminbi, or $5.86 billion, worth of six-year convertible bonds to shore up its capital base and maintain its lending capacity.

The lender, based in Beijing, also said it had received a general mandate to issue new equity equivalent to as much as 20 percent of its existing shares to raise even more capital.

Li Lihui, the bank president, told analysts in a teleconference Monday that the lender had no plans for additional fund-raising in the Shanghai, or Ashare, market, apart from its bond issue.

The analysts spoke on condition of anonymity because they had not been authorized to speak to the media.

Mr. Li said, however, that the bank might sell new shares in the Hong Kong, or H-share, market.

He said the timing and size of any Hshare offer were undecided, according to two analysts who participated in the call.

Bank of China’s Hong Kong-listed shares fell 2.1 percent, while its Shanghai- listed shares lost 0.5 percent.

The bond and equity fund-raising proposal is subject to approval at a meeting of shareholders March 19.

The bank is majority-owned by the state.

Bankers and analysts have identified Bank of China, one of the country’s biggest lenders by assets, as one of the banks most in need of an infusion of funds to meet the capital adequacy ratio mandated by regulators to protect against defaults on loans issued by the bank and support the torrid pace of that lending.

According to calculations by Bocom International analysts, Bank of China will need to raise about 63.5 billion renminbi on top of its convertible bond sales to reach an 11.5 percent capital adequacy ratio by the end of 2012.

Bank of China was in talks with investment banks last year to raise as much as $15 billion in new funds to meet tougher capital guidelines set by Beijing.

Lending by Chinese banks totaled 9.6 trillion renminbi last year, about twice as much as in 2008, supporting the government’s economic stimulus package but prompting concern that banks would need to raise fresh capital.

Chinese banks went on a renewed lending binge at the start of 2010, lending 1.1 trillion renminbi in the first half of January alone, according to reports last week.