China’s four largest state-owned banks will raise a combined 520 billion yuan ($71.60 billion) through private placements, according to filings on Sunday. The move aims to boost the banks’ core capital and comes after Beijing pledged to recapitalize major state banks to support the economy.
Bank of China plans to raise up to 165 billion yuan, while China Construction Bank will issue shares worth up to 105 billion yuan. Bank of Communications will sell shares for as much as 120 billion yuan, and Postal Savings Bank of China will raise up to 130 billion yuan.
The finance ministry, a major shareholder in the four banks, will be involved in all four capital raises. The ministry is set to become the controlling shareholder for Bank of Communications following the share issue.
Chinese banks have reported flat annual profits and lower margins due to economic slowdowns and a struggling property sector. Analysts urge officials to quickly capitalize the country’s big banks to boost lending and manage asset quality strains.
The government has maintained its economic growth target at 5% for this year, pledging more fiscal resources to combat deflationary pressures and offset US tariffs’ impact.
Source: https://www.reuters.com/world/china/chinas-biggest-state-banks-raise-716-billion-private-placements-2025-03-30