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The six major banks are considering increasing capital, with...

The six major banks are considering increasing capital, with high calls for issuing special national bonds: The country plans to increase the core tier one capital of six large commercial banks, and discussions on issuing special national bonds to capitalize state-owned large commercial banks are once again underway. Tian Lihui, Dean of the Institute of Financial Development at Nankai University, stated: Special national bonds, as a way to supplement core tier one capital, have priority over other bonds, usually guaranteed by national credit, with low costs, directly enhancing the core capital of banks. Industry analysts believe that if the current fundraising method involves issuing new shares, it will harm the original shareholders, especially minority shareholders' interests. Therefore, a more feasible approach in the future is to gradually issue new shares in steps and slowly when the stock prices are on an upward trend, based on the different capital supplement pressures of each bank.
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