(6 March 2025 – China) China’s largest banks are set to receive a capital injection from the central government, strengthening their ability to support economic expansion.
On 5 March, political leaders outlined plans to issue CNY500 billion in special government bonds in 2025 to recapitalise China’s six largest commercial banks: Bank of Communications, Industrial and Commercial Bank of China, China Construction Bank, Bank of China, Agricultural Bank of China, and Postal Savings Bank of China. These institutions collectively hold half of the nation’s total commercial banking assets.
The move will ease pressure from slowing internal capital generation, allowing banks greater flexibility to expand while maintaining adequate capital buffers.
As the main executors of government initiatives, megabanks play a crucial role in expanding affordable financial services, adjusting mortgage pricing, and reducing fees to support economic policy goals.