Core Viewpoint - China Construction Bank plans to issue A-shares to raise up to RMB 105 billion to enhance its core tier one capital, supporting future business development and improving risk resilience [2][8]. Fundraising Purpose - The raised funds will be used entirely to supplement the bank's core tier one capital, which is essential for supporting future business growth [2]. Necessity of the Issuance - The issuance is necessary to support high-quality development of the real economy, enhance risk absorption capacity, meet TLAC regulatory requirements, and improve long-term sustainable development capabilities [3][4][5]. Feasibility of the Issuance - The issuance complies with relevant laws and regulations, and it is deemed feasible. The bank aims to enhance its competitive advantage and provide high-quality financial services [3][6]. Impact on Financial Management - The issuance will strengthen the bank's capital base, optimize its capital structure, and enhance its risk resilience. It will also have implications for net assets, capital adequacy ratio, and profitability [7][8]. Summary - The issuance is strategically significant for the bank's long-term development and shareholder value enhancement, ensuring efficient use of raised funds [8].

Core Viewpoint - The Chinese government is implementing a capital injection plan for major state-owned banks to enhance their capital strength and support economic growth through increased credit supply [1][7][9]. Group 1: Capital Injection Details - On March 30, 2023, China Bank, China Construction Bank, and Bank of Communications announced plans to issue A-shares to specific investors, including the Ministry of Finance [1][5]. - China Construction Bank aims to raise up to RMB 105 billion, while Bank of Communications plans to raise up to RMB 120 billion, with the Ministry of Finance expected to subscribe for RMB 112.42 billion [1][6]. - China Bank intends to raise up to RMB 165 billion through a similar issuance [1]. Group 2: Government Support and Economic Context - The government plans to issue special bonds worth RMB 500 billion to support the capital replenishment of state-owned banks, as stated in the government work report [1][7]. - The capital injection is part of a broader strategy to enhance the banks' ability to serve the real economy and support strategic emerging industries and key financing needs [7][8]. Group 3: Historical Context and Future Implications - This capital injection marks the first major round of funding for state-owned banks since 2010, aimed at addressing capital pressures amid a challenging operating environment [9][10]. - Historically, major capital injections have occurred in 1998, 2003-2007, and 2010, with this round expected to stabilize capital markets and improve bank valuations [10].