China's Big Four banks in funding push

China's four largest banks, the Industrial and Commercial Bank of China, China Construction Bank, the Agricultural Bank of China, and Bank of China, are set to issue a new category of bonds to raise funds to meet global capital requirements by early 2025. The banks are planning to tap the domestic debt market with total loss-absorbing capacity (TLAC) bonds, targeting at least CNY10bn each, according to sources familiar with the matter. This new type of bond will help the banks comply with regulatory requirements and absorb losses in case of risk events. The move comes as global debt markets are in a shaky state following Credit Suisse's wipe-out of AT1 bonds, causing some lenders to delay their planned debt sales.