---
title: "Banks intensively redeem high-yield preferred stocks, institutional asset management allocation faces the challenge of \"substitutes\""
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/279337686.md"
description: "In recent years, as the issuance rates of secondary capital bonds and perpetual bonds have decreased, more and more banks have chosen to redeem high-yield preferred shares. Last year, a total of 9 banks redeemed over 100 billion in preferred shares, leading to a contraction in market size. Researchers pointed out that this move is a choice for banks to optimize their capital structure and reduce financial costs"
datetime: "2026-03-16T23:35:11.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/279337686.md)
  - [en](https://longbridge.com/en/news/279337686.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/279337686.md)
---

# Banks intensively redeem high-yield preferred stocks, institutional asset management allocation faces the challenge of "substitutes"

Since last year, with the further decline in the issuance rates of capital instruments such as subordinated capital bonds and perpetual bonds, more and more banks have chosen to proactively redeem existing high-yield preferred shares. Last year, 9 banks collectively redeemed over 100 billion domestic and foreign preferred shares, further shrinking the existing market size. In this regard, researchers stated that this move is a practical choice for commercial banks to "replace old with new" in order to optimize their capital structure and reduce financial costs. (Securities Times)

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