China’s State Council announced following its latest executive meeting that the government will support commercial banks to replenish their capital demands by issuing multiple replenishment tools, The Paper said.
Long-term investors that control funds and annuities will be introduced to participate in the capital increase, the State Council said.
Meanwhile, commercial bank asset management subsidiaries will be supported in an effort to invest in capital supplementary bonds. Foreign financial institutions will also be encouraged to participate in bond market transactions.
The government will also improve the efficiency of giving the green light to perpetual bond issuance for commercial banks, and lower the entry barriers for issuing preferred stocks and convertible bonds, said the State Council.