China to Issue 300 Billion Yuan in Special Bonds to Boost State-Owned Financial Firms

China's Ministry of Finance announced on Monday that it will issue 300 billion yuan (about $44.25 billion) in special treasury bonds to support eight state-owned financial enterprises directly administered by the central government. The funds are aimed at replenishing their core Tier 1 capital, a key measure of financial strength.

The move builds on similar efforts last year and is expected to enhance the institutions' operational capacity, risk resilience, and ability to serve the real economy. The ministry said the injection would provide stronger support for the country's steady and sound economic growth.

The capital will be directed to a mix of banks and insurance groups. Among the recipients are two policy-backed institutions—the Export-Import Bank of China and China Export and Credit Insurance Corporation—to bolster their capacity to support key economic sectors and high-level opening-up. Four state-owned insurance groups, including the People's Insurance Company of China, China Life Insurance, China Taiping Insurance Group, and China Reinsurance Group, will also receive fresh capital to improve their solvency margins and underwriting capacity.

Wang Jian, chief analyst of the banking sector at Guosen Securities, noted that financial institutions that received capital injections last year have delivered sound operating performance. He pointed out that their loan growth rates exceeded the industry average, making them a main force in supporting the real economy. He also highlighted improvements in profits, operating revenue, and relative indicators such as return on assets (ROA) and return on equity (ROE).