China to issue 300bn yuan special bonds for eight state financial institutions

September 7, 2026 at 07:56 PM1 min

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China's Ministry of Finance will issue special treasury bonds worth 300 billion yuan ($44.25 billion) to boost capital at eight state-owned financial institutions under direct central government control. The funds will replenish core tier-1 capital, a key buffer against losses. The move aims to strengthen the institutions' risk resilience and expand financial support for the real economy.

Key Facts

The bond issuance totals 300 billion yuan, equivalent to about $44.25 billion.
Eight state-owned financial institutions under direct central government control will receive the capital.
The funds are earmarked for core tier-1 capital replenishment.
The Ministry of Finance expects the capital increase to strengthen operational capacity and risk resilience.

Bond Issuance Details

China's Ministry of Finance will issue special treasury bonds totaling 300 billion yuan. The amount is approximately $44.25 billion. The proceeds are designated for eight state-owned financial institutions under direct central government management.

Capital Use and Objectives

The funds will be used to replenish core tier-1 capital of the financial institutions. Core tier-1 capital serves as a key reserve for absorbing potential losses and enhancing institutional resilience. The Ministry of Finance expects the capital increase to strengthen operational capabilities and risk resistance. The measure is also intended to expand the financial sector's capacity to support the real economy and contribute to stable economic growth.