The Ministry of Finance recently announced that it will issue 300 billion yuan of special treasury bonds in the near future to support eight central financial enterprises, including the Industrial and Commercial Bank of China and the Agricultural Bank of China, in replenishing core tier-one capital. Together with the subscriptions from other shareholders, the scale of the capital increase reaches 360 billion yuan.
At present, the operation and development of central financial enterprises are generally stable, the asset quality is stable, and the main regulatory indicators are running smoothly, within a safe and healthy range. In this case, what is the purpose of "large" capital injection?
As the bloodline of the national economy, finance is an important part of the country's core competitiveness. The issuance of special treasury bonds to support relevant central financial enterprises to replenish capital is a forward-looking arrangement and a long-term move to strengthen the country's financial foundation and is of great significance to building a financial power and helping the smooth operation of the macro economy.
In 2025, the Ministry of Finance issued 500 billion yuan of special treasury bonds to support the Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank of China in replenishing core tier one capital. The core tier one capital adequacy ratios of the four banks increased by about 0.5 to 1.4 percentage points, and their stable operating capabilities, credit extension capabilities, and risk resistance capabilities were significantly enhanced, fully demonstrating the effect of the capital increase. The capital injection again this year reflects the country’s continued strong support for central financial enterprises to serve as the main force in serving the real economy and the ballast stone for maintaining financial stability.
Serving the real economy is the bounden duty of finance. Bank lending is subject to capital adequacy ratio constraints. Only by increasing core tier one capital can we expand credit scale under the premise of compliance, effectively support the real economy, and benefit many operators and individuals. In the same way, only by enhancing capital strength can insurance companies better improve their solvency and expand underwriting capabilities. By supporting central financial enterprises to replenish core tier-one capital, it will be conducive to the "five major articles" of finance, continue to stimulate economic development momentum, and achieve a virtuous cycle between finance and the real economy.
Compared with the previous round of capital increase, this time in addition to the capital increase of 2 large state-owned commercial banks, 2 policy financial institutions and 4 state-owned commercial insurance companies were also added. Different types of financial institutions have different functional positions. For example, policy financial institutions bear the mission of implementing the national economic and social development policy intentions, while the insurance industry has the important functions of economic "shock absorber" and social "stabilizer". Expanding the coverage of capital injection will promote various financial institutions to better provide high-quality financial services suitable for economic and social development.
This capital increase is also necessary to enhance the ability to resist risks and improve the stability of the financial system. At present, uncertainties in the international economic situation are increasing, and the risks and challenges faced by my country's financial sector remain complex and severe. Capital is the cornerstone for financial institutions to resist risks. Building a multi-level capital replenishment system is an important guarantee for guarding the bottom line against systemic financial risks. Supporting central financial enterprises to replenish core tier-one capital can thicken the capital "cushion" of relevant central financial enterprises, further enhance the enterprise's ability to withstand risks, and consolidate the foundation for long-term development, thereby enhancing the resilience of the financial system and maintaining my country's financial stability and financial security.
Central financial enterprises should take this opportunity to focus on their main responsibilities and businesses, continuously improve their operation and management level and efficiency, better fulfill their missions, and reach a new level in the new journey of serving the high-quality development of the real economy. (Source of this article: Economic Daily Author: Jin Guanping)
