Bank Capital Boost: Perpetual and Secondary Bond Redemptions, Issuance Surge Amid Capital Supplementation Push

Redemption Peak for Perpetual and Secondary Bonds as Banks Intensify Capital Supplementation: On September 10, the Bank of Communications announced that interest payments and redemption of its 40 billion yuan perpetual bonds would be conducted on September 20. Apart from the Bank of Communications, over 80 bank secondary capital bonds and perpetual bonds (collectively referred to as "perpetual and secondary bonds") are set to exercise their redemption rights this year, with a total scale of approximately 1.14 trillion yuan. Simultaneously, the issuance of banks' perpetual and secondary bonds has significantly increased.

As of September 11, the cumulative issuance of perpetual and secondary bonds by commercial banks this year has exceeded 1.3 trillion yuan, more than 2.5 times the issuance volume during the same period last year. Industry insiders believe that looking ahead, the issuance of perpetual and secondary bonds is expected to further accelerate. Only with adequate capital adequacy can commercial banks better conduct credit operations, support the development of the real economy, and simultaneously resist capital risks.