China’s Top State-Owned Banks to Raise $72 Billion in Government-Backed Capital

The initiative seeks to bolster the financial system as Beijing confronts challenges like a property market downturn and slowing economic growth.

Four major state-owned banks—China Construction Bank, Bank of China, Bank of Communications, and Postal Savings Bank of China—plan to raise 520 billion yuan through share sales to government-backed entities.
The Chinese Ministry of Finance will subscribe to shares from all four banks, while China Tobacco and China Mobile will participate in specific purchases.
The shares, denominated in yuan, will trade on the Shanghai Stock Exchange after a five-year lock-up period.
This recapitalization effort follows the National People’s Congress' approval of 500 billion yuan in special government bonds to support the banking sector.
The move is part of Beijing's broader strategy to stabilize its financial system, addressing challenges such as a prolonged property market slump and slowing economic growth.