Zheng Quan Ri Bao·2025-10-20 16:39Core Viewpoint - The announcement from Industrial Bank indicates a trend of banks redeeming perpetual bonds, with a significant amount of secondary capital bonds being redeemed this year, reflecting a shift towards lower interest rate financing options [1][2]. Group 1: Redemption of Perpetual Bonds - Industrial Bank has fully redeemed its perpetual bond issued in October 2020, which had a scale of 30 billion yuan and an interest rate of 4.73% [1]. - As of October 20, over 80 secondary capital bonds have been redeemed this year, totaling more than 970 billion yuan [1][2]. - The redemption trend is primarily driven by banks opting to redeem high-interest bonds and replace them with lower-interest new bonds to reduce financing costs [4]. Group 2: Issuance of New Bonds - Despite the redemption activity, banks continue to show enthusiasm for issuing new secondary capital bonds, with a total issuance of 1.26 trillion yuan as of October 20 this year [4]. - The interest rates for newly issued bonds range from 1.88% to 3.49%, indicating a downward trend in overall issuance rates [4]. - The issuance of new bonds is seen as a strategy to optimize financing structures and improve capital efficiency [4]. Group 3: Market Dynamics - The redemption of high-interest secondary capital bonds is expected to lead to a contraction in supply and a scarcity of high-yield products in the market, potentially driving down yields and increasing investment demand [4]. - The trend of banks redeeming bonds is influenced by the need to adjust capital structures and improve the efficiency of fund utilization [3].