Government Work Report: Planning to issue 300 billion yuan of special treasury bonds in 2026 to supplement the capital of major banks and enhance risk management resources and tools for small and medium-sized institutions

[Caixin] The Fourth Session of the 14th National People’s Congress opened at 9 a.m. on March 5th in Beijing. Premier Li Qiang delivered the government work report, reviewing past achievements and outlining work tasks for 2026. Among them, resolving risks in small and medium-sized financial institutions and capital replenishment for large state-owned banks are key priorities in the financial sector.

The latest government work report states that by 2025, efforts will be made to coordinate risk disposal and transformation of local small and medium-sized financial institutions, with a significant reduction in high-risk institutions and notable results in risk resolution. In 2026, the focus will be on actively and prudently resolving financial risks: increasing resources and tools for risk disposal of local small and medium-sized financial institutions; adhering to market-oriented and rule-of-law principles to orderly handle high-risk institutions; expanding capital replenishment through multiple channels and prudently disposing of non-performing assets of financial institutions; strengthening financial regulatory coordination to prevent and combat illegal financial activities; enhancing financial risk monitoring, early warning, and early correction to improve source risk prevention and control; and standardizing competition order among financial institutions, while deepening the reduction and quality improvement of local small and medium-sized financial institutions.