FINANCE

China Banks Restart Capital-Replenishment Bond Sales After Rare Drought

Published: Apr. 23, 2026 10:49 p.m. GMT+8

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The first three months of the year typically account for 10% to 16% of annual capital-bond issuance

Chinese commercial banks resumed issuing capital-replenishment bonds in April after an unusual first-quarter drought, setting the stage for a potential record month of debt sales.

The revival in the issuance of tier-2 capital and perpetual bonds — key instruments for lenders to strengthen their balance sheets — comes as banks work through a backlog of deals delayed by slow regulatory approvals and reduced near-term funding pressure.

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Chinese banks resumed tier-2 (180B yuan issued) and perpetual bond (145B yuan) sales in April after zero issuance in Q1 2026.
Delays due to slow approvals and low funding pressure; backlog to fuel Q2 peak.
April total projected at 400B yuan, full-year 1.6-1.7T yuan; TLAC bonds to hit 400B yuan in 2026.

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Who’s Who

Bank of Communications: Bank of Communications planned to issue up to 50 billion yuan ($7.3 billion) in tier-2 capital bonds on Thursday, amid a surge in Chinese banks' capital-replenishment bond sales in April.

ICBC: Industrial and Commercial Bank of China Ltd. (ICBC) issued tier-2 capital bonds earlier in April, contributing to a 130 billion yuan raise with peers. It also issued perpetual bonds as part of five lenders' 145 billion yuan total. ICBC is scheduled to issue up to 50 billion yuan in TLAC bonds on Saturday.

China Minsheng Bank: China Minsheng Bank issued tier-2 capital bonds in April, contributing to 130 billion yuan raised together with ICBC and Bank of China.

Bank of China: Bank of China Ltd. issued tier-2 capital bonds in April, part of 130 billion yuan raised collectively with Industrial and Commercial Bank of China Ltd. and China Minsheng Banking Corp. Ltd., amid a surge in Chinese banks' capital-replenishment bond sales.

China CITIC Bank: China CITIC Bank Corp. Ltd. led perpetual bond issuance in April, raising 40 billion yuan, as part of five lenders' combined 145 billion yuan.

Everbright Securities: Everbright Securities Co. Ltd. described Q1 2026's zero capital-bond issuance as a rare anomaly (normally 10-16% of annual). Analyst Wang Yifeng forecasts April tier-2 and perpetual bonds at 400B yuan (recent record high) and full-year at 1.6-1.7T yuan.

Caitong Securities: Caitong Securities Co. Ltd. notes that supply deferred from Q1 is expected to concentrate in Q2, a traditional peak for bank debt sales.

AI generated, for reference only