China’s finance ministry has announced a significant capital injection plan for four of its largest state banks. The move aims to boost the lenders’ capital buffers, following Beijing’s earlier pledge to strengthen their financial foundations.
As part of this initiative, Bank of Communications Co., Bank of China Ltd., Postal Savings Bank of China Ltd., and China Construction Bank Corp. will raise up to $72 billion through additional share placements on the mainland stock market. The Ministry of Finance will be the primary investor in these private placements, subscribing for a total of $69 billion worth of shares.
This move is part of Beijing’s efforts to enhance the financial stability of the country’s banking sector. By increasing the capital buffers of key lenders, China aims to mitigate potential risks and ensure the long-term sustainability of its banking system.
Source: https://www.bloomberg.com/news/articles/2025-03-30/china-state-banks-plan-placements-of-72-billion-to-add-capital?srnd=phx-economics-v2