China is set to issue special sovereign bonds worth $44 billion to inject fresh capital into its largest banks, a move designed to strengthen the $69 trillion financial system. This follows a similar recapitalization effort last year targeting four major lenders. Industrial & Commercial Bank of China and Agricultural Bank of China, previously excluded, will now receive funds. The capital injection aims to relieve banks' profit margins, eroded by falling interest rates, and boost lending capacity while expanding provisions for potential bad debts. China's onshore CSI 300 index rose 0.9% in early trade, reflecting market optimism.