Zheng Quan Zhi Xing·2025-03-30 09:13Core Viewpoint - China Construction Bank (CCB) plans to issue A-shares to specific investors, primarily the Ministry of Finance, to raise up to RMB 105 billion to strengthen its core Tier 1 capital and support sustainable business growth [5][20][25]. Group 1: Issuance Overview - The issuance aims to enhance CCB's risk absorption capacity and optimize its capital structure, aligning with regulatory requirements for TLAC (Total Loss-Absorbing Capacity) [20][21]. - The issuance price is set at RMB 9.27 per share, which is 80% of the average trading price over the 20 trading days prior to the pricing benchmark date [10][11]. - The total number of shares to be issued will not exceed 30% of the total share capital before the issuance [11][12]. Group 2: Use of Proceeds - The funds raised will be used entirely to supplement CCB's core Tier 1 capital, supporting future business development [13][20]. - The issuance is deemed necessary to maintain CCB's role in supporting the real economy and enhancing its risk management capabilities [20][21]. Group 3: Regulatory and Approval Process - The issuance requires approval from the China Banking and Insurance Regulatory Commission, the Shanghai Stock Exchange, and the China Securities Regulatory Commission [3][14]. - The decision for the issuance is valid for twelve months from the date of approval by the relevant shareholder meetings [13]. Group 4: Impact on Financial Metrics - Post-issuance, CCB's net asset scale will increase, potentially leading to a short-term dilution of earnings per share and return on equity, but long-term benefits are expected as capital strengthens [25][27]. - The issuance is projected to improve CCB's capital adequacy ratios, enhancing its ability to withstand financial risks [27][28].