The issuance of tier-2 capital bond issuance by Chinese commercial banks has seen a rapid acceleration since the start of 2022, with funds raised in the first three quarters already exceeding the full-year figure for 2021.
During the first three quarters of 2022 Chinese banks issued 636.765 billion yuan in tier-2 capital bonds, for growth of 114.21% compared to the same period last year, according to figures from Tonghuashun iFinD (同花顺iFinD).
The first three quarters of 2022 saw 65 tier-2 capital bond issues by 55 Chinese banks, as compared to 45 such issues during the same period of 2021, which raised only 297.260 billion yuan.
Out of the 55 Chinese banks that have issued tier-2 capital bonds since the start of 2022, around 80% have been small and medium-sized lenders.
The big six state-owned banks nonetheless accounted for a disproportionate share of funds raised, with a figure of 420 billion yuan, or approximately 66% of the total.