Core Points - Recently, Bank of Communications and Bank of China announced successful issuance of A-shares, raising funds of 120 billion and 165 billion respectively [1][2] - The Ministry of Finance subscribed to the majority of the new shares issued by these banks, contributing a total of 500 billion to support capital replenishment [1][3] Group 1: Fundraising Details - Bank of Communications completed the issuance of approximately 14.1 billion A-shares at a price of 8.51 yuan per share, raising 120 billion yuan, which is expected to enhance its core Tier 1 capital adequacy ratio by about 1.25 percentage points [2][3] - Bank of China issued approximately 27.8 billion A-shares, raising 165 billion yuan, with the funds entirely allocated to increase its core Tier 1 capital [3][4] Group 2: Shareholding Structure - After the issuance, the Ministry of Finance became the controlling shareholder of Bank of Communications, holding over 35% of the shares [2][3] - Bank of China remains controlled by Huijin Investment, which holds nearly 60% of the bank's shares, while the Ministry of Finance directly holds about 8.64% [3][4] Group 3: Capital Adequacy and Market Impact - The capital indicators of the six major state-owned banks are reported to be within a "healthy range," with core Tier 1 capital adequacy ratios for major banks projected to improve by the end of 2024 [4][5] - The capital replenishment aims to enhance the banks' ability to support the real economy and respond to global regulatory pressures, rather than merely increasing capital adequacy ratios [5][6] Group 4: Future Outlook - The capital increase is expected to optimize the capital structure of state-owned banks, enhance their ability to support national strategic initiatives, and strengthen the backing for the transformation of the real economy [5][6] - The expected increase in core Tier 1 capital adequacy ratios post-injection for Bank of Communications, Bank of China, and others is significant, with projections indicating improvements of 1.25 to 1.51 percentage points [6]