Kathmandu— Eight central financial enterprises, including the Industrial and Commercial Bank of China (ICBC) and the Agricultural Bank of China (ABC), have announced plans to raise a combined 360 billion yuan to bolster their core Tier 1 capital, enhancing their ability to support the real economy and withstand risks.

Capital Raising Plans

The capital replenishment is part of China's efforts to strengthen the capital base of major state-owned financial institutions. The Ministry of Finance announced in August that it would issue 300 billion yuan of special treasury bonds to support the capital replenishment. Experts believe that the capital increase is not just about refueling financial institutions but about strengthening their capital base to better serve the real economy and foster a stable financial environment for economic development during the 15th Five-Year Plan period (2026-2030).

The latest capital replenishment follows a similar move last year, with the Ministry of Finance issuing 500 billion yuan in special treasury bonds in 2025 to support the capital replenishment of major state-owned commercial banks. The broader scope of the capital increase reflects the different roles of various types of financial institutions, with diversified funding sources working in concert to provide stronger support for the real economy.

(With inputs from Xinhua)

Originally published on abcnews.com.np.