China to issue 500-billion-yuan special treasury bonds to support state-owned banks

BEIJING, March 31 (Xinhua) -- China will issue 500 billion yuan (about 69.7 billion U.S. dollars) of special treasury bonds to support large state-owned commercial banks in replenishing their core tier-one capital, the Ministry of Finance said Monday.

The capital injection will be carried out prudently, in line with market-oriented and law-based principles, to support Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank of China.

China's major state-owned commercial banks currently enjoy stable operations, sound asset quality, and sufficient provisions for potential losses. Key regulatory indicators remain within a "healthy range," the ministry said.

The capital support is expected to further consolidate and enhance the banks' capacity for sound operations, promote their high-quality development, and deliver greater value and long-term stable returns for investors.

The move will also enable these banks to better serve the real economy, providing stronger support for the country's steady and long-term economic development, the ministry added.