Chinese Banks Accelerate Financial Bond Issuance in September 2026

Since September, commercial banks have notably accelerated the pace of financial bond issuance, with multiple banks disclosing announcements related to financial bond issuance in the interbank market. This round of concentrated issuance has been led by large state-owned banks and joint-stock banks, with small and medium-sized banks including city commercial banks and rural commercial banks also participating. The instruments cover green financial bonds, urban renewal special financial bonds, small and micro enterprise loan special financial bonds, and ordinary financial bonds. Over a longer horizon, bank financial bond issuance has shown a sustained warming trend since July 2026.

On September 10, Industrial and Commercial Bank of China disclosed the issuance announcement for its 2026 first tranche of green financial bonds (Bond Connect), with a base issuance scale of RMB20 billion, divided into two tranches of RMB18 billion and RMB2 billion. The announcement stated that if the full-market subscription multiple reaches 1.4 times or above, the bank may exercise an over-allotment option, with the combined maximum additional issuance of the two tranches not exceeding RMB20 billion. On the same day, Shanghai Pudong Development Bank disclosed the issuance announcement for its 2026 first tranche of financial bonds, with a base issuance scale of RMB20 billion; if the full-market subscription multiple reaches 1.4 times or above, the bank may issue an additional amount not exceeding RMB10 billion.

Issuance scales among city commercial banks vary. Since September, Bank of Shanghai has set a base issuance scale of RMB20 billion, the highest among city commercial banks; Bank of Qingdao, Bank of Sichuan, Bank of Guizhou, and Ningbo Tongshang Bank have set base issuance scales of RMB4.5 billion, RMB4 billion, RMB3 billion, and RMB2.5 billion, respectively. In addition, Bank of Hangzhou, Bank of Suzhou, Bank of Chongqing, Shanghai Rural Commercial Bank, and several other banks have successively disclosed or completed financial bond issuance.