Hua Xia Shi Bao·2025-05-26 10:06Core Points - Recent approvals from the China Securities Regulatory Commission (CSRC) for China Bank, Bank of Communications, and Postal Savings Bank to issue A-shares mark a significant step in capital replenishment for state-owned banks [2][5] - The Ministry of Finance plans to invest 500 billion yuan through cash subscriptions to support the capital of these banks, enhancing their core Tier 1 capital [3][6] - The approval process reflects efficient execution and collaboration among regulatory bodies, indicating the government's commitment to financial stability and economic development [3][4] Capital Increase Details - China Bank has received approval to issue shares, with a registration valid for 12 months, and must report any significant events to the Shanghai Stock Exchange [4][6] - The total fundraising amounts for the banks are as follows: China Bank (165 billion yuan), Bank of Communications (105 billion yuan), Postal Savings Bank (130 billion yuan), and a total of up to 520 billion yuan for all four banks [6][9] - The Ministry of Finance will become a significant shareholder in these banks post-issuance, with ownership stakes increasing to 8.48% in China Bank and 34.80% in Bank of Communications [6][10] Capital Adequacy Ratios - As of the end of 2024, the core Tier 1 capital adequacy ratios for the banks are: China Bank (12.20%), Construction Bank (14.48%), Bank of Communications (10.24%), and Postal Savings Bank (9.56%) [9][10] - Post-capital increase, these ratios are expected to improve, with China Bank's ratio rising to 13.06% and Postal Savings Bank's to 11.07% [10][11] Market Confidence and Pricing - The issuance prices for the new shares are set above the current market prices, indicating a premium issuance that aims to boost market confidence [12][14] - For example, China Bank's issuance price is set at 5.93 yuan per share, with a premium of 7.62% over the current market price [12][13] - The pricing strategy is designed to balance the interests of new and existing shareholders while enhancing the bank's long-term value [14]