Since 2026, 8 banks have announced that they have redeemed or are about to redeem preferred shares, with a total scale of 185.5 billion yuan, exceeding the redemption scale of domestic bank preferred shares throughout 2025. According to industry insiders, a large number of preferred shares have recently entered the redeemable window, and the cost of issuing perpetual bonds has declined. Banks have reduced capital replenishment costs through “redemptions and exchanges,” that is, redeem high-cost preferred shares, and continue to be perpetual bonds with lower interest rates. According to reports, preferred shares are a type of share compared to common shares. As an important tool for banks to supplement capital, their core characteristic is that they have priority over common shares in terms of profit distribution and surplus property distribution.

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