18 Regional Chinese Banks Receive Capital Increases from State-Owned Enterprises

Local Small Banks' Insolvency Due to US-China Trade War and COVID-19 Impact

[Asia Economy Beijing=Special Correspondent Jo Young-shin] This year, 18 small and medium-sized banks located in local areas of China received capital increases from state-owned enterprises.

There are about 4,000 small and medium-sized banks in China.

According to Chinese internet media Pengpai on the 7th, the small and medium-sized banks that received capital injections from state-owned enterprises this year include Shandong Dingtao Rural Commercial Bank, Jiangxi Guangxin Rural Commercial Bank, Hubei Danzhangkou Rural Commercial Bank, totaling 18 banks.

Among the 18 banks, seven are located in Shandong Province, the largest number.

Since 2018, due to the US-China trade war and the COVID-19 pandemic, concerns about the insolvency of small and medium-sized banks in China have increased.

In fact, since last year, a bank run occurred at some branches of local banks, raising fears that instability in some local banks could spread to a crisis in the entire financial system.

The Chinese government has encouraged state-owned enterprises to actively participate in capital increases of small and medium-sized banks, stating from the beginning of the year that small and medium-sized banks will be able to replenish capital in 'various ways.'

This content was produced with the assistance of AI translation services.