Redemption rollovers combined with capital replenishment needs: Bank Tier 2 and perpetual bonds issuance surged significantly in the first three quarters.

In the first three quarters of this year, commercial banks significantly ramped up issuance of tier-2 capital bonds and perpetual bonds, with a combined scale of about 1.63 trillion yuan, up about 30% year-on-year. The need to refinance maturing bonds and the new capital demand brought about by credit extension jointly pushed banks to accelerate "capital replenishment." In terms of replenishment paths, large and medium-sized banks became the main force in issuing tier-2 capital bonds and perpetual bonds, while small and medium-sized banks relied more on capital increases and share expansion to replenish capital.