Xinhua
07 Sep 2026, 07:19 GMT+10
BEIJING, Sept. 7 (Xinhua) -- Eight central financial enterprises, including the Industrial and Commercial Bank of China (ICBC), on Sunday unveiled plans to replenish capital, with the funds to strengthen their core Tier 1 capital.
The eight enterprises are set to raise or receive a combined 360 billion yuan (about 53.11 billion U.S. dollars).
Experts said the capital replenishment is a forward-looking policy measure that is expected to further strengthen the financial institutions' sound operations, enhance their ability to withstand risks, and improve their capacity to serve the real economy.
Agricultural Bank of China (ABC) and the ICBC announced plans to raise up to a combined 260 billion yuan through A-share issuances to designated investors to replenish their core Tier 1 capital.
ABC said in a filing with the Shanghai Stock Exchange that it plans to issue A-shares to China's Ministry of Finance (MOF), China National Tobacco Corporation and its relevant subsidiaries, with total proceeds of up to 160 billion yuan.
After deducting issuance expenses, the bank will use all proceeds to replenish its core Tier 1 capital. The final fundraising amount will depend on the issuance plan approved by regulatory authorities, according to ABC.
ICBC said separately that it plans to raise up to 100 billion yuan via an A-share issuance to the MOF, China National Tobacco Corporation and related subsidiaries.
The bank said it will use the net proceeds entirely to replenish its core Tier 1 capital. The capital increase will be implemented after the bank completes the required internal and external approval procedures.
Core Tier 1 capital, the highest-quality form of bank capital used to absorb losses, serves as a key buffer against financial risks. If a bank raises more core Tier 1 capital, it generally has more room to expand lending while maintaining regulatory capital ratios.
Also on Sunday, the Export-Import Bank of China said the MOF will inject 30 billion yuan into the bank to better support its policy-finance mandate and service major national strategies, while China Export & Credit Insurance Corporation said it will receive an injection of 10 billion yuan.
China's finance ministry will also provide fresh capital to four major Chinese insurers in moves aimed at strengthening their capital positions, solvency and risk resilience, according to statements released Sunday.
The planned capital replenishment comes as China has been moving to strengthen the capital base of major state-owned financial institutions. The MOF announced in August that it would issue 300 billion yuan of special treasury bonds to support the capital replenishment.
"Financing demands in areas such as technological innovation, industrial upgrading and expanding domestic demand remain strong, requiring stable support from the financial institutions," said Yu Xiang, chief analyst of policy research at CITIC Securities.
The capital replenishment is not simply about "refueling" financial institutions, but about strengthening their capital base to better serve the real economy, Yu said.
The replenishment is also expected to strengthen the risk resilience of central financial enterprises, thereby fostering a stable financial environment for economic development during the 15th Five-Year Plan period (2026-2030), experts said.
The latest capital replenishment follows a similar move last year. The MOF issued 500 billion yuan in special treasury bonds in 2025 to support the capital replenishment of major state-owned commercial banks.
Compared with last year's measure, the scope of institutions covered by the latest capital increase has been expanded to include policy financial institutions and state-owned commercial insurers.
"The broader scope of the capital increase reflects the different roles of various types of financial institutions. With diversified funding sources, they can work in concert to provide stronger support for the real economy," Yu said.
Get a daily dose of Milwaukee Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Milwaukee Sun.
More InformationKATHMANDU, Nepal: Rescue teams in Nepal have found a Chinese national and a woman alive, 10 days after devastating floods and landslides...
DUBAI, U.A.E.: U.S. forces attacked three Iranian oil tankers on September 5, including one near Kharg Island, a major center for Iran's...
LONDON/WASHINGTON, D.C.: An explosion at a wedding gathering in southern Iran that killed four people and injured at least 68 others...
GENEVA, Switzerland: The El Niño weather pattern could strengthen further in the coming months and may continue to affect weather conditions...
KYIV, Ukraine: A Russian drone struck the headquarters of Ukraine's Security Service, known as the SBU, in central Kyiv on September...
DUBLIN, Ireland: The Environmental Protection Agency (EPA) has launched an investigation into noise complaints linked to a data center...
(Photo credit: Gary A. Vasquez-Imagn Images) Scott McLaughlin ended his 2026 IndyCar season with a long-sought victory at the Mission...
(Photo credit: Ken Blaze-Imagn Images) Daniel Schneemann singled home automatic runner Angel Genao in the 10th inning, giving the...
(Photo credit: Aaron Doster-Imagn Images) Elly De La Cruz belted a two-run homer in the fourth inning and a two-run double in the...
(Photo credit: Sam Navarro-Imagn Images) The Chicago Cubs will look to strengthen their position atop the National League wild-card...
(Photo credit: David Banks-Imagn Images) Kyle Harrison will try to bounce back from a disastrous start when the Milwaukee Brewers...
(Photo credit: Bill Streicher-Imagn Images) Zack Wheeler worked six strong innings and Kyle Schwarber hit his major league-leading...
