Commercial Bank Tier-2 and Perpetual Bond Issuance Reaches RMB 1.28 Trillion in January-August 2026, Up 22%

As of August 12, 2026, commercial banks had issued a total of 62 Tier-2 capital bonds and perpetual bonds in the interbank market, with total issuance reaching RMB 1,281.728 billion, up 22.31% from RMB 1,047.96 billion in the same period of 2025. The data reflects a notable expansion in the overall volume of capital replenishment instruments issued by commercial banks during the year.

In terms of issuance pace, there were no new issuances in the first quarter of 2026. April saw issuance of RMB 315 billion, May RMB 281 billion, and June reached the year's peak of RMB 406.628 billion, with total second-quarter issuance exceeding RMB 1 trillion. In July, monthly issuance fell to RMB 225.6 billion, nearly halving from the June peak. Issuance has continued to weaken since August, with institutions including Zheshang Bank, Bank of Jiangxi, Bank of Zhengzhou, Bank of Qingdao and Jiangnan Rural Commercial Bank having completed relevant bond issuances.

In terms of issuer structure, second-quarter supply was dominated by large state-owned banks and joint-stock banks, with relatively large single-issue sizes. Only some leading city commercial banks participated, and rural commercial banks made limited issuances. In the second half of the year, most of the available approval quotas of large state-owned banks have been used up, and incremental issuance from joint-stock banks has contracted notably. The share of issuance by city commercial banks and rural commercial banks has risen, though their individual issue sizes remain relatively small.