Zheng Quan Shi Bao Wang·2025-03-31 03:32Group 1 - The banking sector experienced a significant rise on March 31, with Jiangyin Bank increasing nearly 5%, and other major banks like China Construction Bank, Shanghai Bank, Bank of China, and Bank of Communications rising approximately 3% and 2% respectively [1] - On March 30, four major banks announced plans to raise funds through the issuance of A-shares to specific investors, aiming to supplement their core Tier 1 capital, with total fundraising amounts of up to RMB 105 billion, 165 billion, 120 billion, and 130 billion respectively [1] - The issuance of special government bonds worth RMB 500 billion to inject capital into large banks aligns with market expectations, indicating strong support from major shareholders for the stable and healthy development of these banks [1] Group 2 - Guolian Minsheng Securities noted that the central bank's monetary policy meeting in Q1 2025 emphasized guiding financial institutions to increase credit supply, and the recent private placement by state-owned banks can effectively alleviate capital pressure and enhance their service to the real economy [2] - Following the capital increase, the banks' ability to sustain dividend payouts is expected to improve significantly, with an average cash dividend ratio of 30.67% projected for the four major state-owned banks in 2024, providing stronger assurance for dividends [2] - The overall operating conditions of banks in China are under pressure, but with the continuous improvement in funding costs, the fundamentals of banks are expected to gradually stabilize, supported by the implementation of special government bonds to alleviate capital pressure [2]