China injects 295 billion yuan into ICBC, ABC and China Life in second round of state bank recapitalization
China's Ministry of Finance and other state investors will inject up to 260 billion yuan into Industrial and Commercial Bank of China and Agricultural Bank of China, plus 35 billion yuan into China Life Insurance Group, totaling 295 billion yuan. This marks the second round of capital replenishment for major state-owned banks, following 520 billion yuan raised by four other banks in 2025.
On September 6, Industrial and Commercial Bank of China (ICBC) and Agricultural Bank of China (ABC) each announced plans to issue A-shares to specific investors. ICBC aims to raise up to 100 billion yuan, while ABC aims to raise up to 160 billion yuan, for a combined maximum of 260 billion yuan. After deducting issuance expenses, all proceeds will be used to replenish core Tier 1 capital. On the same day, the Ministry of Finance will inject 35 billion yuan into China Life Insurance (Group) Company, bringing the total to 295 billion yuan, to enhance China Life's operational stability and risk resilience.
ICBC's issuance targets include the Ministry of Finance, China National Tobacco Corporation and its subsidiaries, including Shanghai Tobacco, Yunnan China Tobacco, Hunan China Tobacco, and Hunan Tobacco, all subscribing in cash. The Ministry of Finance plans to subscribe 70 billion yuan, China National Tobacco Corporation 10 billion yuan, and each of the four tobacco subsidiaries 5 billion yuan. The capital increase is subject to internal and external approval procedures.
ABC announced its A-share issuance plan on the Shanghai Stock Exchange, targeting the Ministry of Finance, China National Tobacco Corporation and its related subsidiaries, including Jiangsu Tobacco, Zhejiang Tobacco, Hubei Tobacco, Beijing Tobacco, and Shuangwei Investment. The Ministry of Finance plans to subscribe 130 billion yuan, China National Tobacco Corporation 10 billion yuan, Jiangsu Tobacco, Zhejiang Tobacco, and Hubei Tobacco each 5 billion yuan, Beijing Tobacco 3 billion yuan, and Shuangwei Investment 2 billion yuan. The total proceeds will not exceed 160 billion yuan, with the final amount subject to regulatory approval.
This is the second round of capital increases for major state-owned commercial banks, following the completion of capital replenishment by Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank of China in 2025. In September 2024, the National Financial Regulatory Administration stated it would enhance core Tier 1 capital for six large commercial banks, implementing the plan in an orderly manner under the principles of "coordinated promotion, batch-by-batch implementation, and one bank, one policy." In 2025, the Ministry of Finance issued the first batch of 500 billion yuan in special treasury bonds to support these four banks in replenishing core Tier 1 capital. The four banks each launched A-share issuances to specific investors, raising a combined 520 billion yuan, with the Ministry of Finance subscribing 500 billion yuan and the remainder taken by investors such as China National Tobacco, China Mobile, and China Shipbuilding.
The 2026 Government Work Report proposed issuing 300 billion yuan in special treasury bonds to support capital replenishment for major state-owned commercial banks. The Ministry of Finance's issuance schedule for 2026 special treasury bonds for central financial institution capital injection indicates that the bonds will be issued in May and June 2026. With ICBC and ABC now disclosing their A-share issuance plans, all six major state-owned commercial banks have entered or completed this round of capital replenishment arrangements.