In a bid to fortify its financial system and spur economic resilience, four major state-owned banks in China have unveiled plans to raise a total of 520 billion yuan through targeted A-shares issuances. Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank of China will use the raised funds to bolster their core tier-1 capital.
Each institution aims to hit distinct targets—Bank of China with 165 billion yuan, China Construction Bank with 105 billion yuan, Bank of Communications with 120 billion yuan, and Postal Savings Bank of China with 130 billion yuan. Complementing these efforts, China’s Ministry of Finance will actively participate in the fundraising, with a combined subscription target of up to 500 billion yuan, reinforcing the commitment to a stable financial framework.
Last year, the four banks collectively reported cumulative net profits of around 750 billion yuan, a testament to their operational strength. Industry analysts note that this proactive capital injection will not only optimize bank capital structures and enhance risk management capabilities but also ensure these institutions remain pivotal in serving the real economy and driving long-term national growth.
For globally engaged readers—from young global citizens to business professionals—this strategic move highlights dynamic financial reform and robust support for sustained economic progress in an increasingly interconnected world.
Reference(s):
China to boost 4 major banks with 500 billion yuan capital injection
cgtn.com
