China Injects Capital In Four Largest Banks, Business Activities Expands in March

Li Chen
31 Mar, 2025
Hong Kong

Stock market indexes in China and Hong Kong turned sharply lower in Monday's trading, and investors reviewed the latest updates on business activities. 

China's manufacturing sector expanded for the second month in a row in March, according to an official survey released by the National Bureau of Statistics. 

The purchasing managers' index edged up to 50.5 from 50.2, and the non-manufacturing activities advanced to a three-month high of 50.8 from 50.4 in February, respectively.

The increase in activities confirmed that the stimulus provided by the government is cushioning the negative impact of sharply higher U.S. tariffs and elevated trade tensions with the European Union.

China also announced its plans to inject as much as 520 billion yuan, or about $71.5 billion, into the four largest banks, as promised after the meeting of the National People's Congress last month. 

The finance ministry arranges the sale of securities in banks, and shares will be denominated in the yuan and will trade on the Shanghai Stock Exchange after the ending of a five-week lock-up period. 

China Construction Bank plans to sell stocks worth 105 billion yuan. Bank of Communications sells at least 120 billion yuan, Postal Savings Bank of China sells 130 billion yuan, and Bank of China sells about 165 billion yuan.

The leading four banks announced their plans to sell stocks in separate statements released to the Hong Kong Stock Exchange. 

 

China Indexes and Stocks 

The Hang Seng index decreased 1.8% to 23,085.16, and the mainland-focused CSI 300 index dropped 0.7% to 3,888.86.

China Construction Bank gained 3.2% to HK $6.91, Bank of China added 2% to HK $4.68, Bank of Communications edged up 0.7% to HK $6.98, and Postal Savings Bank of China decreased 2% to HK $4.85.

Bank of China Communications plans to sell 13.8 billion shares at 8.71 yuan each, Postal Savings Bank to sell 20.6 billion shares at 6.32 yuan each, and CCB plans to sell 11.3 billion shares at 9.27 yuan each.