Debt Issues by Chinese Banks Surge in 2022, Funds Raised Rise over 50%

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Chinese banks have dramatically stepped up fund-raising via bond issues since the start of 2022, as ample liquidity led to declines in debt costs.

As of 11 April a total of 58 commercial banks in China had engaged in 74 bond issues since the start of 2022, according to figures from Chinese financial data provider Wind.

These bond issues by Chinese banks raised 699.05 billion yuan, for an increase of around 53% compared to the same period last year, when 457.17 billion yuan in funds was raised via debt issues.

Small and medium-sized banks saw an especially marked increase in bond issues in 2022, taking advantage of ample liquidity and low debt costs at the start of 2022 to further shore up their capital standing.