BEIJING, May 10 (Xinhua) – Chinese commercial banks are stepping up their paces to issue tier-2 capital bonds, the Xinhua-run Shanghai Securities News reported on May 10.
According to statistics from Wind Info., Chinese commercial banks have issued overall 362 billion yuan worth of tier-2 capital bonds in the first four months of this year, surging 394.55 percent compared with 73.2 billion yuan in the same period of last year.
The bond issuance boom came after Chinese authorities issued guidelines to encourage banking financial institutions to auction capital supplementary bonds in a bid to shore up their ability to absorb capital losses.
Since the beginning of this year, more than 20 commercial banks have floated tier-2 capital bonds, including 6 urban commercial banks and 8 rural commercial banks.
In 2018, Chinese commercial banks auctioned overall 70 batches of tier-2 capital bonds , raising a total of 490.72 billion yuan.
(Edited by Yang Yifan, yangyifan@xinhua.org)
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