Why did the Chinese Ministry of Finance concentrate on injecting funds into state-owned financial institutions and what happened? Don't be surprised, last year (2025) the Ministry of Finance also concentrated on injecting capital into a group of large state-owned commercial banks, and the method was very similar to this year. 1) On March 30, 2025, four state-owned banks including Bank of China, China Construction Bank, Bank of Communications, and Postal Savings Bank of China issued plans to issue A-shares to specific targets, raising a total of approximately 520 billion yuan, all of which will be used to supplement core tier one capital. Among them, the Ministry of Finance subscribed 500 billion yuan, and the fund source was the 500 billion yuan "special treasury bond invested by central financial institutions" issued that year. In addition, central enterprises such as China Tobacco, China Mobile, and China Shipbuilding also participated in the partial subscription. This fund will be fully received in late June 2025, and four banks will implement private placements. This is the first batch of "coordinated promotion, phased and batch, and one policy for one line" arrangements mentioned in the government work report at the beginning of the 25th year. 2) The action on September 6 this year (2026) is essentially the continuation of the same round of policies and the second batch of implementation: covering ICBC and Agricultural Bank of China, which have not yet injected capital before, and including insurance institutions and policy financial institutions for the first time, with the scale adjusted from 500 billion yuan last year to 300 billion yuan of special treasury bond support. The core logic of the two rounds of capital injection is consistent: 1) All of them are forward-looking supplements to core tier one capital. As globally systemically important banks, state-owned large banks face higher capital buffers and TLAC requirements. After the grouping of some institutions is raised, the standards will be further tightened; 2) The continuous narrowing of interest rate differentials has led to a slowdown in internal capital accumulation, and there are still potential pressures in areas such as real estate and local debt. External capital injection can quickly increase the "safety cushion" and enhance the ability to resist risks, which belongs to "preparing for the future" rather than emergency blood transfusion; Enhance risk resistance capability; 3) Capital has a multiplier effect, and 1 yuan of core capital can leverage several times the amount of credit. Two rounds of capital injection have released trillions of yuan in loan space, providing targeted support for technological innovation, green transformation, infrastructure, agriculture, rural areas, and exports, and serving the credit allocation space of the real economy. ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ 4) In 2026, insurance institutions will be further covered because the yield of treasury bond will continue to decline, which will lead to the increase of reserves of insurance institutions, the pressure on net assets, and the downward risk of core solvency indicators. Injecting funds into insurance institutions not only strengthens their solvency, but also releases insurance funds as patient capital to enter the market; Policy oriented institutions strengthen their function of opening up to the outside world. The overall strategy is to coordinate proactive fiscal and financial policies, actively enhance the resilience of the financial system and the sustained ability to serve the real economy, while maintaining overall healthy business indicators. There are two points to consider: 1) Announce the timing of capital injection In 25-26, the first batch of registration with state-owned financial institutions was announced on March 30, 25, which was the most critical moment of the Trump tariff war (April 2 was the "Liberation Day"); The announcement of the second batch of registrations this year coincides with two weeks before the visit of Chinese leaders to the United States; 2) Will there be supporting policies introduced Actually, let's take a look at the first batch of recent capital injections in 98 years, 03-08 years, 10 years later, and March 25 years in history. All previous capital injections are not isolated actions, and the follow-up is often accompanied by a series of loose policies such as interest rate reduction and reserve ratio reduction, additional issuance of treasury bond Will there be any new supporting policies for the new batch of capital injections into state-owned financial institutions announced today? If so, will the released water be directed towards new areas of productivity such as AI? More worthy of consideration