Why should the state inject capital into the four major banks? Because of historical reasons, the previous four major banks gave too many loans to the government and enterprises, many of which did not meet the bank's business objectives and risk control, and were all administrative orders. These loans produced a large number of bad debts, which led to the crisis of the whole banking and financial system, which can be said to be on the verge of bankruptcy.

In order to establish an effective and healthy financial system, we must first save the four major banks. Therefore, a capital injection plan and four asset management companies were established. Huijin used foreign exchange reserves to inject capital into the four major banks, and then divested a large part of non-performing loans to the four major asset management companies. In this case, the capitalists of the four major banks will be enriched, the asset quality will be significantly improved, and then they will be restructured into joint-stock companies, listed for financing, and further standardized development. It can be said that if it had not been for the four major banks,

By the way, at present, only ICBC, CCB and BOC have completed capital injection and restructuring and listing. Due to the heavy historical burden, China Agricultural Bank has not completed the restructuring and listing, but it will soon.