On January 27th, 2024, the bank’s “perpetual bond” market experienced a large-scale redemption wave, with a redemption scale of up to 1.11 trillion yuan for the whole year, a year-on-year increase of 181.81%. The main reason for this is due to factors such as the decline in interest rates and the need for capital replenishment, which have led banks to choose to redeem old bonds in order to optimize financing costs. At the same time, the reporter noticed that the strategic differentiation between large banks and small and medium-sized banks in the issuance of “perpetual bonds” is gradually emerging. Large banks, due to their high capital adequacy ratio, have weakened their issuance motivation, while joint-stock banks and city commercial banks have generated significant demand for continued issuance. Looking ahead to 2025, there will still be a significant maturity of “perpetual bonds”, and banks need to actively respond to refinancing pressures and plan capital replenishment strategies reasonably to ensure capital adequacy and stable operations. (Shanghai Stock News)
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