Four of the mainland's largest state-owned banks said on Sunday they plan to raise a combined 520 billion yuan (US$71.60 billion) in private placements from investors, including the Ministry of Finance (MOF), after Beijing pledged to help them support the economy.

The fundraising, which aims to boost the banks' core tier-1 capital, comes after policymakers vowed earlier this month to recapitalise major state banks to the tune of 500 billion yuan to boost their ability to bolster the real economy.

Bank of China said it aims to raise up to 165 billion yuan and China Construction Bank plans private placements of up to 105 billion yuan, filings released by the banks on Sunday said.

Bank of Communications said it will sell shares of as much as 120 billion yuan, and Postal Savings Bank of China will raise up to 130 billion yuan.

The finance ministry, a major shareholder of the four banks, will be involved in all four capital raises, the filings showed. The ministry is set to become the controlling shareholder for Bank of Communications following the share issue, the bank said in its filing.

The four banks said that capital replenishment from the MOF is a crucial move from the government to support their stable operations and development.

Industry analysts said that the capital replenishment is a proactive measure that will strengthen the banks' capital foundations and optimise their capital structures.

This move will enhance their operational resilience and risk management capabilities, enabling them to better serve the real economy and stabilise the financial system, according to analysts.

China has set its economic growth target for this year at roughly 5 percent, unchanged from last year, as the government pledged more fiscal resources to fend off deflationary pressures and offset the impact from US tariffs. (Xinhua, Reuters)