BEIJING, Sept. 6 (Xinhua) -- Agricultural Bank of China (ABC) and Industrial and Commercial Bank of China (ICBC) on Sunday announced plans to raise up to a combined 260 billion yuan (about 38.4 billion U.S. dollars) through A-share issuances to designated investors to replenish their core Tier-1 capital.
ABC said in a filing with the Shanghai Stock Exchange that it plans to issue A-shares to China's Ministry of Finance (MOF), China National Tobacco Corporation and its relevant subsidiaries, with total proceeds of up to 160 billion yuan.
After deducting issuance expenses, the bank will use all proceeds to replenish its core Tier-1 capital. The final fundraising amount will depend on the issuance plan approved by regulatory authorities, according to ABC.
ICBC said separately that it plans to raise up to 100 billion yuan via an A-share issuance to the MOF, China National Tobacco Corporation and related subsidiaries.
The bank said it will use the net proceeds entirely to replenish its core Tier-1 capital. The capital increase will be implemented after the bank completes the required internal and external approval procedures.
Core Tier 1 capital, the highest-quality form of bank capital used to absorb losses, serves as a key buffer against financial risks. If a bank raises more core Tier 1 capital, it generally has more room to expand lending while maintaining regulatory capital ratios.
The planned capital replenishment comes as China has been moving to strengthen the capital base of major state-owned financial institutions. The 2026 government work report proposed issuing 300 billion yuan in special treasury bonds to help major state-owned commercial banks replenish capital.
Also on Sunday, the Export-Import Bank of China said the MOF will inject 30 billion yuan into the bank to better support its policy-finance mandate and service major national strategies, while China Export & Credit Insurance Corporation said it will receive an injection of 10 billion yuan.
China's finance ministry will also provide fresh capital to three major Chinese insurers in moves aimed at strengthening their capital positions, solvency and risk resilience, according to statements released Sunday. ■
