China to Sell Special Sovereign Bonds to Boost Bank Capital

Traffic in Pudong's Lujiazui Financial District in Shanghai, China, on Wednesday, Aug. 7, 2024. The People's Bank of China is potentially getting the respite it’s been hoping for from global financial markets, bringing closer a dose of monetary stimulus long awaited by investors and traders.Photographer: Qilai Shen/Bloomberg

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By Bloomberg News

October 11, 2024 at 10:52 PM EDT

Updated on

October 11, 2024 at 11:38 PM EDT

China said it will issue special sovereign notes to boost capital at its largest state-owned lenders.

The bond issuance is aimed at supporting big state banks to replenish their core tier-1 capital, Finance Minister Lan Fo’an said at a briefing in Beijing. The move will strengthen their capability to fend off risks and spur lending to better support the domestic economy, he added.