The third major bank has raised over a trillion in a private placement, and the total size of perpetual bonds issued this year is approaching 800 billion.

Following the Bank of China and Bank of Communications, Postal Savings Bank of China also recently announced a super 100 billion yuan private placement. Through this private placement, Postal Savings Bank of China has received national large-scale capital injection for the first time, with the Ministry of Finance ranking as the third largest shareholder. Looking at the issuance of Tier 2 perpetual bonds since the second quarter, the pace of "blood transfusion" by banks has significantly accelerated compared to the first quarter, with the issuance scale approaching 800 billion yuan so far this year, close to the same period last year. Regarding the Tier 2 perpetual bond market for banks this year, industry insiders believe that with the completion of the national debt injection by the four major banks, and the issuance of TLAC bonds by the five major banks, the supply of Tier 2 perpetual bonds by major banks is expected to shrink. However, in the background of increasing maturity size, small and medium-sized banks still face pressure in issuing new bonds. With the situation where redemptions and new issuances are still the main sources of supply, lower bond market interest rates will increase the incentive for banks to redeem bonds early.