Caixin
Caixin Global – Latest China News & Headlines

Home >

TRENDING
Alibaba-Owned Livestreaming Platform Taobao Live Sees Rapid Growth Amid Outbreak
Foxconn Allows Henan Workers to Return to Its Zhengzhou Complex
Didi Installs In-Car Protective Sheets Between Drivers and Passengers to Control Coronavirus
LATEST
Xiaomi-Backed Smart Home Cleaner Maker Raises $641 Million in Shanghai IPO
Foxconn Allows Henan Workers to Return to Its Zhengzhou Complex
Alibaba-Owned Livestreaming Platform Taobao Live Sees Rapid Growth Amid Outbreak
Lenovo Charges Up Investors by Playing Down Virus Impact
Huawei ‘Disappointed’ After U.S. Court Rejects Its Federal Ban Challenge
Didi Installs In-Car Protective Sheets Between Drivers and Passengers to Control Coronavirus
Puma and Adidas Face Massive Sales Drop Due to Coronavirus
China Raises First-Batch Rare-Earth Mining Quota by 10% for 2020
Tesla and CATL Enter Advanced Stages of Talks Over Cobalt-Free Battery Supply
Hong Kong Unemployment Surges to Record High in Wake of Coronavirus Outbreak
First Huawei Smartphone to Replace Google Mobile Services Hits Europe Next Week
Jaguar Land Rover Unsure It’ll Recoup China Sales Lost to Virus
U.S. Jury Orders Motorola’s Chinese Rival to Pay $765 Million for Infringement
Property Giant Offers Massive Discounts Due to Covid-19 Virus
Didi to Launch Ride-Hailing Services in Sydney Next Month
Alibaba and Tencent Develop Health Tracking App To Help Authorities Control Virus
Apple Will Miss Quarterly Revenue Target Due to Coronavirus
Beijing Auto Show Postponed Amid Epidemic
Steel Mills Cool Down as Workers Stay Home for Virus Control
ByteDance Eyes Tencent, NetEase With Key Gaming Appointment

By Han Wei / Jan 25, 2019 04:23 AM / Finance

Photo: VCG

Photo: VCG

China will allow insurance companies to invest in perpetual bonds and Tier 2 capital bonds issued by certain banks as the government seeks to bolster the banking industry’s capital, the country’s top banking and insurance regulator said Thursday.

The move will help commercial banks improve their capital structure to enhance lending ability and capacity to fend off financial risks. It will also diversify insurance funds’ investment portfolios, the China Banking and Insurance Regulatory Commission said in a statement.

The CBIRC announcement came shortly after the central bank said it would set up a swap system to improve the liquidity of banks' perpetual bonds and encourage banks to replenish capital by issuing them.

Perpetual bonds have no maturity date. They are a common way for commercial banks worldwide to supplement Tier 1 capital. Earlier this month, Bank of China became the first Chinese commercial bank to win approval to sell as much as 40 billion yuan ($5.9 billion) of perpetual bonds.

Share this article
Open WeChat and scan the QR code