Tier-2 perpetual bond issuance by Chinese commercial banks accelerated into June. As of June 3, banks issued 22 Tier-2 perpetual bonds year-to-date totaling 646 bln yuan; April issuance alone was 315 bln yuan, a multi-year high for the month. Market participants attribute the pickup to faster regulatory approvals, a low-rate window that lowers funding costs, and special government bond injections supporting bank capital. YTD issuance yields have declined sharply versus the same period in 2025, w

Tier-2 perpetual bond issuance by Chinese commercial banks accelerated into June. As of June 3, banks issued 22 Tier-2 perpetual bonds year-to-date totaling 646 bln yuan; April issuance alone was 315 bln yuan, a multi-year high for the month. Market participants attribute the pickup to faster regulatory approvals, a low-rate window that lowers funding costs, and special government bond injections supporting bank capital. YTD issuance yields have declined sharply versus the same period in 2025, with a minimum of 1.9% and an average of 2.03% through June 3. Tianfeng Securities’ fixed-income chief analyst Tan Yiming said funds were the main buyers in May, drawn by relatively wider credit and product spreads.