One of the biggest stories of 2019 has been the rapid development’s of China’s domestic bond market and nowhere has that been more apparent than in its ability to absorb its banks’ capital needs.
In the space of one year, China’s AT1 market has become the largest in the world. In doing so, China has completely overturned expectations that its banks would be forced to issue offshore not only for their current capital requirements but also for the large chunk of the additional funding they will need once China implements Total Loss Absorbing Capital TLAC rules for its Globally Systemic Important Banks G-SIBs.
Dealogic figures...
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