As COVID-19 increases pressure on capital in the banking sector, we expect more hybrid capital instruments to be issued by Chinese banks this year. We believe substantial risk differentiation exists between senior unsecured bonds and hybrid capital instruments, given the loss-absorbing feature of the latter. Appropriate rating differentiation of banks’ senior bonds, tier-2 capital bonds and perpetual bonds in the domestic market will help investors properly assess the risk associated with hybrid instruments.

We expect pressure on capitalization to increase this year as banks pump credit into the real economy as part of efforts to cope with the effects of COVID-19.Within the banking sector, small and mid-sized banks are under the highest capital pressure. As of the end of the first quarter of 2020, the average capital adequacy ratio of city banks was 12.65%, while that of  rural banks was 12.81%, 1.88 and 1.72 percentage points lower than the industry average respectively.  The government announced in the 2020 Government Work Report that it would  prioritize improvements to the capitalization of small and mid-sized banks. 

北京，2025年6月18日—标普信评宣布，已评定“兴瑞2025年第六期不良资产支持证券”项下优先档资产支持证券（以下简称“优先档证券”）的信用等级为AAAspc(sf)。该交易由兴业银行股份有限公司发起。

信用等级列表：  

优先档证券：AAA_spc(sf)  

相关方法：  

标普信用评级（中国）— 结构融资评级方法论  

相关评论与研究：  

标普信用评级（中国）个人消费贷款资产支持证券分析方法

中国不良资产支持证券市场多维度观察2025版

传媒联络人：

雷文静，北京；(86)10-6569-2961；michelle.lei@spgchinaratings.cn

分析师：

李佳蓉，北京；jiarong.li@spgchinaratings.cn

李开颜，北京；kaye.li@spgchinaratings.cn

On June 17,2025, S&P Global (China) Ratings published its latest credit rating report on Yiwu China Commodities City Holdings Limited. Please click the link below to read the PDF.

On June 17,2025, S&P Global (China) Ratings published its latest credit rating report on Zhejiang China Commodities City Group Co., Ltd. Please click the link below to read the PDF.

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