Several banks have successively redeemed their preferred shares.

Recently, Bank of Jiangsu issued an announcement of its plan to redeem preferred shares. Since the beginning of this year, a number of listed banks have successively implemented or disclosed preferred share redemption plans. A review by the reporter found that since the beginning of this year, five listed banks have completed preferred share redemptions, namely China Everbright Bank, Ping An Bank, China Merchants Bank, Bank of Beijing and Bank of Nanjing. Among them, the "Nanyin You 2" redeemed by Bank of Nanjing had an issuance scale of 5 billion yuan and completed redemption and payment in September. Behind the intensive redemption of preferred shares, it does not mean that banks' capital replenishment pressure has disappeared, and the industry's demand for capital replenishment will still objectively exist over the long term. Xue Hongyan, a specially invited researcher at Sushang Bank, believes that the demand for capital replenishment has not faded with this round of redemption wave. The narrowing interest margin continues to weaken banks' ability to replenish capital internally through retained profits. Credit extension, consumption of risk assets and additional capital regulatory requirements make capital occupation rigid, and the coupon interest saved from redemption still has to serve business expansion under capital constraints. Subsequent capital replenishment is expected to focus on "redeeming old and issuing new," using perpetual bonds and other instruments to replace existing high-interest capital tools.