Jin Rong Shi Bao·2025-06-25 12:26Core Viewpoint - The issuance of A-shares by major state-owned banks, including China Construction Bank, aims to enhance their core tier one capital, thereby strengthening their financial stability and ability to serve the real economy [1][3][4]. Group 1: Fundraising Details - China Construction Bank has completed a targeted A-share issuance, raising a total of 105 billion RMB, which will be used to supplement its core tier one capital [1]. - The total amount raised by four major state-owned banks, including China Construction Bank, Bank of China, Bank of Communications, and Postal Savings Bank, amounts to 520 billion RMB [1][3]. - The fundraising efforts align with the government's plan to issue special treasury bonds worth 500 billion RMB to support the capital replenishment of these banks [3]. Group 2: Impact on Capital Strength - The capital injection is expected to enhance the capital strength of state-owned banks, improving their operational stability and service quality to the real economy [3][4]. - The core tier one capital adequacy ratios of the four banks will increase by 0.86, 0.49, 1.28, and 1.51 percentage points, respectively, following the completion of the issuance [4]. - The capital injection could potentially leverage an additional 4 trillion RMB in credit, based on an 8x multiplier effect [4]. Group 3: Strategic Importance - The issuance is part of a broader "incremental financial policy" aimed at strengthening the banks' capital structure and enhancing their risk absorption capabilities [5]. - The support from the Ministry of Finance is seen as a proactive measure to ensure the stability of large state-owned banks, which are currently operating with healthy asset quality and sufficient provisions [4].