The Asia Global Payment Summit. Bali, Indonesia. 10-11 October 2019

410B Yuan in Perpetual Bonds Issued by Eight Chinese Banks in 2019, 360B Yuan More on the Way

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Chinese banks have issued more than 400 billion yuan in perpetual bonds since the launch of the new instruments at the start of 2019.

Eight Chinese banks have successfully issued nine perpetual bonds in 2019 worth approximately 410 billion yuan, according to a report from National Business Daily.

Issuers since the start of the second half have included Shanghai Pudong Development Bank, ICBC, Agricultural Bank of China, Bank of Bohai and Bank of Communications.

On 25 September Guangfa Bank issued up to 45 billion yuan in perpetual bonds, while in the same month Agricultural Bank of China, Bank of Bohai and Bank of Communications also collectively issued 95 billion yuan in the instruments.

Bank of Bohai’s 20 billion yuan issue was the first perpetual bond to be released by a non-listed bank in China.

Analysts points out that popularity of the instruments has been greatly abetted by the People’s Bank of China’s (PBOC) launch of central bank bill swaps to shore up their liquidity.

Approximately 360 billion yuan more in perpetual bonds are on track for issuance, by lenders including China Construction Bank, Postal Savings Bank of China, China Everbright Bank, CITIC Bank, Ping An Bank, China Merchants Bank and Bank of Hangzhou.

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