Zhongyuan Bank (ZYBANK) has released a circular detailing its capital strategy for 2026-2028 and convened its first extraordinary general meeting (EGM) for 29 April 2026.

Key points:

1. Three-Year Capital Plan • Core Tier 1, Tier 1 and total capital adequacy ratios are targeted to remain at 7.70%, 10.50% and 12.70%, respectively. • Aggregate capital replenishment over 2026-2028 is projected at RMB 20 billion to support business expansion and maintain regulatory buffers. • Existing capital instruments of RMB 14.60 billion are scheduled to mature between 2026 and 2028, including RMB 13.00 billion in perpetual bonds and RMB 1.60 billion in special bonds. • The Bank will pursue a “light-capital” business model, increase focus on fee-based and wealth-management activities, and strengthen internal capital assessment processes.

2. Proposed Sci-Tech Innovation Bonds • Maximum principal: RMB 500 million. • Tenor: not less than three years; fixed or floating rate. • Proceeds will fund technology-innovation lending and optimise liability structure. • Validity of shareholder approval: 36 months.

3. Proposed Undated Capital Bonds • Maximum principal: RMB 10 billion. • Instrument qualifies as Additional Tier 1 capital with write-down features; fixed or floating rate. • Proceeds will directly boost the Bank’s Additional Tier 1 capital. • Validity of shareholder approval: 36 months.

4. Upcoming Shareholder Meeting • 2026 First EGM to be held physically at the Bank’s Zhengzhou headquarters at 15:00 on 29 April 2026. • Shareholders will vote on: – Capital replenishment and use plan for 2026-2028 (ordinary resolution). – Issuance of sci-tech innovation bonds (special resolution). – Issuance of undated capital bonds (special resolution). • Shareholder register closes from 24 April to 29 April 2026; record date is 24 April 2026.

5. Authorisations Subject to EGM approval, the Board—and subsequently the chairman, president and board secretary—will be empowered for 36 months to determine issuance tranches, timing, pricing and all ancillary matters for both bond programmes.

The proposed measures aim to secure long-term capital stability, fund targeted growth in technology sectors and preserve regulatory compliance as existing instruments mature.