Gokhan Ergocun
07 September 2026•Update: 07 September 2026
China plans to issue $44.25 billion in special treasury bonds to support eight state-owned financial enterprises in replenishing their core Tier One capital, the country’s Finance Ministry announces on Monday.
The Chinese Ministry of Finance said it will issue 300 billion yuan ($44.25 billion) in special treasury bonds to strengthen these institutions’ operational capacity and resilience to risks, Xinhua reported.
The ministry released a circular stating that this move will provide stronger support for the country’s steady and sound economic growth.
The eight institutions include two major state-owned commercial banks, the Industrial and Commercial Bank of China (ICBC) and the Agricultural Bank of China (ABC), alongside the Export-Import Bank of China and the China Export and Credit Insurance Corporation.
The list also features four state-owned commercial insurers, including the People’s Insurance Company of China, China Life Insurance Company, China Taiping Insurance Group and China Reinsurance Corporation.
The circular noted that the capital replenishment will help listed enterprises create greater value for investors and deliver stable long-term returns.
The ministry added that the eight institutions currently operate steadily with stable asset quality and major regulatory indicators remaining within safe ranges.
The announcement followed specific plans unveiled by the eight firms on Sunday to strengthen their core Tier One capital by raising or receiving a combined 360 billion yuan ($53.1 billion).
ABC and ICBC plan to raise up to 260 billion yuan ($38.35 billion) of this total through A-share issuances to designated investors.
Financial institutions use core Tier One capital as the highest-quality form of capital to absorb losses and serve as a key buffer against financial risks.
A stronger core Tier One capital position generally provides banks with more room to expand lending while maintaining regulatory capital ratios.
