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CN MOF to Issue RMB300B Special Treasury Bonds to Inject Capital into 8 Central Financial Enterprises
2026-09-07 08:27:59 China's Ministry of Finance (MOF) will soon issue RMB300 billion of special treasury bonds to actively support eight central financial enterprises in replenishing core tier-1 capital. ICBC (01398.HK), ABC (01288.HK), Export-Import Bank of China, China Export & Credit Insurance Corporation, PICC GROUP (01339.HK), China Life Group, China Taiping and CHINA RE (01508.HK) and other central financial enterprises separately announced capital injection plans, marking the largest concentrated capital replenishment action in China's financial system in recent years. The MOF's capital injections into the eight central financial enterprises are a forward-looking arrangement aimed at "preparing for rainy days", supporting the high-quality development of central financial enterprises and helping the macro economy maintain stable long-term growth, according to industry sources cited by Xinhua News Agency. However, the broad scope of institutions covered by this round of capital injections still exceeded general market expectations. Following the capital injections, the RMB300 billion capital could leverage approximately RMB4 trillion in asset expansion, enhancing direct credit issuance and external M&A capabilities, strongly supporting the real economy and preventing financial risks, according to previous forecasts by CICC. The move is estimated to raise the average core tier-1 capital ratio of the two banks by 0.6 ppts, slightly below the 1.0 ppts increase in the first batch. The RMB300 billion capital injection is equivalent to 0.7 years of banks' internally generated capital replenishment and 2.2 years of dividend scale. ~ AASTOCKS Financial News Website: www.aastocks.com | |