The capital replenishment of small and medium-sized banks continues.

The capital of Chengdu, the first city bank in the west, has recently completed a transfer-to-equity replenishment, with its registered capital increasing from RMB 3,736 million to RMB 4,238 million, or 13.46 per cent, to become the first bank to achieve capital expansion through conversion in 2026. Retail lending accounted for only 17.26 per cent of the total, well below the industry average of 25-30 per cent. The core-level capital stock ratio is just 99.94 per cent; however, the buffer space is clearly shrunk. The capital replenishment of small and medium-sized banks is spreading.