Four of China's large state-owned commercial banks announced on 30 March 2025 that they would raise a combined CNY 520 billion (about USD 71.6 billion) through private placements of A-shares, with the Ministry of Finance committing to subscribe up to CNY 500 billion funded by special government bonds. The ministry's commitment therefore covers all but CNY 20 billion of the total.
Bank of China plans to raise CNY 165 billion, Postal Savings Bank of China CNY 130 billion, Bank of Communications CNY 120 billion and China Construction Bank CNY 105 billion. The placements to specific investors were disclosed in filings to the Shanghai and Hong Kong stock exchanges.
SPECIAL TREASURY BONDS
The capital comes from the CNY 500 billion of special treasury bonds earmarked for recapitalising large state-owned banks, which was approved by the National People's Congress in March.
The banks said the proceeds, net of issuance costs, would be used to replenish their core tier-one capital. The Ministry of Finance said the banks' main regulatory indicators were in a healthy range, and the four lenders reported combined net profit of around CNY 750 billion for 2024.
ICBC AND ABC NOT INCLUDED
Industrial and Commercial Bank of China and Agricultural Bank of China, the country's two other largest state-owned lenders, were not part of this round of placements.