China National Tobacco Corporation will invest 60 billion yuan in China’s two largest banks, the Industrial and Commercial Bank of China and the Agricultural Bank of China, as part of a 260 billion yuan capital raise. The Ministry of Finance is contributing 200 billion yuan while China Tobacco and its subsidiaries cover the remaining 60 billion, split evenly between the two lenders. The funds will exclusively replenish core Tier 1 capital, with a five-year lock-up period on the acquired shares. China Tobacco, a state monopoly controlling virtually the entire domestic cigarette market, previously invested 75.8 billion yuan in the Bank of Communications in March 2025, bringing its cumulative investments across major Chinese banks to approximately 780 billion yuan. This operation is part of a broader 360 billion yuan package that also includes capital injections for insurers and policy banks.
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