In a bold move to strengthen their financial foundation, four major state-owned banks on the Chinese mainland are launching a capital-raising drive. Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank of China are set to raise a combined 520 billion yuan through an A-shares issuance. 💰
Each bank has its own target: Bank of China aims for 165 billion yuan, China Construction Bank for about 105 billion yuan, Bank of Communications for 120 billion yuan, and Postal Savings Bank of China for 130 billion yuan. After deducting issuance-related costs, these funds will boost their core tier-1 capital, a crucial step to ensure steady operations and long-term growth.
This initiative follows the recent work report approved by the National People’s Congress, which also sanctioned the issuance of 500 billion yuan in special government bonds to recapitalize state-owned banks. The Chinese Ministry of Finance is set to participate in the fundraising with an intended subscription of up to 500 billion yuan, signaling strong state support.
Industry analysts view this proactive move as a strategic power-up that will optimize capital structures, enhance operational resilience, and improve risk management. It is expected to help the banks serve the real economy better, create greater value for investors, and support stable, long-term economic growth. 🚀
With cumulative net profits reaching around 750 billion yuan last year, these banks are well-positioned to leverage this capital boost, paving the way for a robust financial future on the Chinese mainland. Stay tuned for more updates on this dynamic development!
Reference(s):
China to boost 4 major banks with 500 billion yuan capital injection
cgtn.com
