China’s finance ministry will inject 500 billion yuan (around $69 billion) into four of the country’s largest state-owned banks as part of a broader effort to strengthen the financial sector and support economic growth.

The Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank plan to raise a combined 520 billion yuan ($72 billion) through private share placements, with the finance ministry as the top investor in each offering.

The fundraising aims to replenish the banks’ core tier-1 capital, with new shares issued at a premium of up to 21.5% above recent trading levels. This move follows Beijing’s earlier pledge to use special sovereign bonds to boost lenders’ capital buffers and enable them to better support sectors such as property, technology, and consumption. While China’s largest lenders already exceed regulatory capital requirements, they face growing challenges including shrinking margins, slowing profits, and rising bad debt. Strengthening their capital positions is seen as key to maintaining financial stability and achieving the government’s 5% growth target for 2025.