China plans to inject capital into six major commercial banks: official

China will inject capital into six major banks to consolidate and enhance their ability for steady operation and development, said director of the National Financial Regulatory Administration Li Yunze said at a press conference in Beijing on Tuesday.

The unusual move comes as China's largest commercial banks struggle with low margins and declining profits.

"After studying the situation, the state plans to increase the tier-1 capital of six major commercial banks. The capital will be injected in an orderly manner, with coordinated planning, phased implementation and tailored policies. The administration will continue to prompt the major commercial banks to enhance management and strengthen their ability to achieve high-quality development under capital constraints," Li told reporters. Tier-1 capital refers to the core capital held in a bank's reserves, including common stock and disclosed reserves.

Authorities are also working on expanding the scope of equity investment trials, according to Li.

Asset investment and management departments at major commercial banks have carried out equity investment pilot programs in Shanghai, and conditions are in place to expand the programs, Li said, adding that the administration will study how to expand the programs to 18 large and medium-sized cities with active scientific and technological innovation, including Beijing. At the same time, measures will be taken to relax restrictions and optimize assessment.

"We will relax the restrictions on the amount and proportion of equity investment to an appropriate extent, increase the proportion of on-balance-sheet investment from the original 4 percent limit to 10 percent, and increase the proportion limit of investment in a single private fund from the original 20 percent to 30 percent. Efforts will also be made to guide relevant institutions to implement the due diligence and responsibility exemption requirements, and to establish and improve long-cycle and differentiated performance appraisals," said Li.

China plans to inject capital into six major commercial banks: official

U.S. military forces continue to enforce "U.S. sanctions and fully implement the blockade against ships entering or departing Iranian ports", U.S. Central Command said on social media Saturday.

In a post on X, the U.S. Central Command said that 37 vessels have been redirected since the start of the blockade, noting a merchant vessel named Sevan, intercepted in the Arabian Sea earlier Saturday by the U.S. forces, is currently "complying with U.S. military direction to turn back to Iran under escort".

U.S. President Donald Trump announced on April 12 that the U.S. Navy would begin blocking ships trying to enter or leave the Strait of Hormuz. His decision came after the first round of U.S.-Iranian talks on April 11 and 12 in Islamabad, Pakistan, failed to produce a peace deal.

In response to Trump's announcement, Iranian President Masoud Pezeshkian has warned that "any threat against the security of the Strait of Hormuz will have large-scale consequences for global trade".

On Saturday, Iran's main military command, Khatam al-Anbiya Central Headquarters, reiterated its pledge to react if the United States continues its "blockade, banditry and piracy" in the West Asia region. Trump announced earlier Saturday that he has canceled the trip of U.S. representatives going to Islamabad this weekend for talks with the Iranian side.

US military says blockade against Iran to be continuously "fully implemented"