Bank "capital replenishment" rates drop to 1.81%, with major banks accounting for nearly 70% of the 1.6 trillion yuan in Tier 2 and perpetual bonds.

After Agricultural Bank of China issued RMB 50 billion in tier-two capital bonds at a coupon rate of 1.81%, setting a new low issuance rate for the bank, China Construction Bank fully issued RMB 40 billion in second-phase perpetual bonds on September 24 at a coupon rate of 1.83%. At this point, the issuance rates of capital replenishment bonds (tier-two capital bonds and perpetual bonds) by major state-owned banks have collectively entered the "1% range" just in April this year, the rates on "tier-two and perpetual bonds" in the market were still around 2.00%, and within just a few months they have fallen by nearly 20 basis points in total.