1. Report Industry Investment Rating No information about the industry investment rating is provided in the given content. 2. Core Viewpoints of the Report - The supply of secondary and perpetual bonds (二永债) is expected to moderately increase in April, breaking the issuance silence since the beginning of the year. The supply is driven by banks' capital - supplementing needs, the demand to meet the Total Loss - Absorbing Capacity (TLAC) gap, and the renewal of expiring bonds. The urgency for state - owned banks to issue secondary and perpetual bonds to supplement capital has been structurally alleviated, and the net supply of state - owned banks' secondary and perpetual bonds in 2026 is expected to remain at a low level [1][19]. - In March, the yields of credit bonds decreased overall. The long - end performance was weaker than the short - end, and the credit spreads widened passively. In April, the credit bond market is expected to show a pattern of "warming demand and moderately increasing supply", which is beneficial for credit bond performance, and the spreads are expected to compress [2]. - For investment strategies, short - term credit bonds can be used as a coupon base, and the duration can be appropriately extended to 4 - 5 years. Institutions with stable liabilities can appropriately allocate ultra - long - term credit bonds of about 7 years. Attention can be paid to the opportunity of excess spread compression of 3 - 5Y medium - and high - grade bank secondary and perpetual bonds [2][40]. 3. Summary According to the Directory 3.1 How to View the Subsequent Supply of Secondary and Perpetual Bonds? 3.1.1 Bank Capital Tool Regulatory Approval Feature Summary - The regulatory approval quota is mainly for national and joint - stock banks, with 2023 being the peak year. Since 2024, the approval quota for secondary and perpetual bonds has declined. The proportion of approval quotas for state - owned banks has decreased in the past two years, while that of joint - stock banks and city commercial banks has increased [11]. - The regulatory approval time has seasonal characteristics. In the past two years, it has been concentrated in Q2 and Q4. Q1 is the off - season for approvals, and the quota proportion is mostly less than 10% [13]. - State - owned banks have a fast first - issuance rhythm after approval but issue in multiple batches. Small and medium - sized banks tend to use most of the approved quota at once [18]. 3.1.2 Outlook for the Subsequent Supply of Secondary and Perpetual Bonds - As of the end of March 2026, the effective approval quota for commercial bank capital tools is 189.79 billion yuan, with 71.41 billion yuan already used. State - owned banks have the most remaining quota [19]. - In April, the supply of secondary and perpetual bonds is expected to moderately increase. On one hand, the capital - supplementing urgency of state - owned banks has been alleviated. On the other hand, the redemption and renewal demand for secondary and perpetual bonds in Q2 is nearly 30 billion yuan, with state - owned and joint - stock banks accounting for 79% [19][20]. 3.2 Review and Outlook of the Credit Bond Market in March - In March, the yields of credit bonds decreased overall. The long - end performance was weaker than the short - end, and the credit spreads widened passively. The yields of most credit bonds decreased, with short - term bonds having a larger decline [24][27]. - The scale of wealth management products decreased, and the net - breaking rate increased. As of the end of March, the full - caliber wealth management scale decreased to 31.14 trillion yuan, and the net - breaking rates of all bank wealth management products and wealth management subsidiaries increased [30]. - In April, the credit bond market is expected to show a pattern of "warming demand and moderately increasing supply", which is beneficial for credit bond performance, and the spreads are expected to compress. Short - term credit bonds can be used as a coupon base, and the duration can be appropriately extended to 4 - 5 years [37][40]. 3.3 Primary Market 3.3.1 Issuance Volume - In March 2026, the issuance scale and net financing scale of credit bonds increased both year - on - year and month - on - month. The issuance scale was 1.6271 trillion yuan, and the net financing was 349.6 billion yuan. The net financing of urban investment bonds was 50.3 billion yuan, and that of industrial bonds and financial bonds was 374.8 billion yuan and - 75.5 billion yuan respectively [44]. 3.3.2 Issuance Term - The average issuance term of credit bonds lengthened month - on - month. From March 1st to March 27th, the average issuance term was 3 years, an increase of 0.23 years compared with February. The average issuance terms of urban investment bonds, industrial bonds, and financial bonds all increased [46]. 3.3.3 Issuance Cost - The average issuance cost of credit bonds decreased month - on - month. From March 1st to March 27th, the average issuance interest rate was 2.07%, a decrease of 2bp compared with February. The average issuance interest rate of urban investment bonds decreased by 5bp, that of industrial bonds remained flat, and that of financial bonds increased by 2bp [49]. 3.3.4 Cancellation of Issuance - In March, the number and scale of cancelled credit bond issuances increased month - on - month. A total of 40 credit bonds were cancelled, with a total scale of 2.1985 billion yuan [52]. 3.4 Secondary Market 3.4.1 Trading Volume - In March, the trading volumes of all types of credit bonds increased month - on - month. Urban investment bonds had the largest increase in trading volume, followed by industrial bonds. The trading terms and implicit ratings of different types of bonds also changed [58]. 3.4.2 Trading Liquidity - In March, the turnover rates of urban investment bonds, industrial bonds, and financial bonds all increased. The turnover rates of all terms of urban investment bonds and industrial bonds increased, and for financial bonds, the turnover rate of the 5 - 7 - year term increased the most [60]. 3.4.3 Spread Tracking - In March, the spreads of urban investment bonds showed different trends. Only the spreads of 3 - year AA(2) - rated, 7 - year all - rated, and 10 - year medium - and low - rated bonds narrowed, while the spreads of other terms widened. The spreads of most AAA - rated and AA - rated industrial bonds widened. The spreads of most bank secondary and perpetual bonds, as well as those of securities and insurance sub - bonds, widened, with the ultra - long - end performing better [66][71][73]. 3.5 Hot Bonds in March - According to the bond liquidity scores, the top 20 urban investment bonds, industrial bonds, and financial bonds in terms of liquidity scores are selected for investors' reference [77]. 3.6 Credit Rating Adjustment Review - In March, the bond ratings of 4 bonds were upgraded, and there was no downgrade [83].

Core Viewpoint - Agricultural Bank successfully issued 30 billion TLAC bonds in the interbank market, marking the first combination issuance of three maturities in the financial bond market this year [1] Summary by Categories Issuance Details - The bond issuance consists of three maturities: 150 billion for 3+1 years at an interest rate of 1.83%, 30 billion for 5+1 years at an interest rate of 1.87%, and 120 billion for 10+1 years at an interest rate of 2.06% [1] Financial Strategy - The bank has set up a mechanism for additional issuance, with an excess issuance of 10 billion allocated entirely to the 10+1 year maturity, which helps ensure compliance with TLAC requirements while further optimizing the liability structure [1]

Core Viewpoint - China Construction Bank plans to hold its first extraordinary general meeting of shareholders in 2025, where several key proposals will be discussed, including financial bond issuance, profit distribution, and the election of new directors [1][3][10]. Proposal Summaries - **Proposal 1: Annual Financial Bond Issuance Plan** The bank proposes to issue financial bonds not exceeding 745 billion RMB in 2025, subject to regulatory approvals [1][2]. - **Proposal 2: 2024 Profit Distribution Plan** The bank plans to distribute a total cash dividend of 1,007.54 billion RMB for 2024, with a dividend payout ratio of 30%, translating to 0.403 RMB per share [3][4]. - **Proposal 3: Election of Non-Executive Director** Li Li is nominated to serve as a non-executive director for a term of three years, pending regulatory approval [5][6]. - **Proposal 4: Election of Independent Director** Zhang Weiguo is nominated as an independent director for a three-year term, also subject to regulatory approval [7][8]. - **Proposal 5: Conditions for Issuing A Shares to Specific Objects** The bank seeks to issue A shares to specific investors to support high-quality economic development and enhance capital structure [10][11]. - **Proposal 6: Specific A Share Issuance Plan** The bank plans to issue A shares at a price of 9.27 RMB per share, with a total issuance not exceeding 1,050 billion RMB [11][14]. - **Proposal 7: Feasibility Analysis Report** A report on the feasibility of the A share issuance is prepared to support the proposal [17][18]. - **Proposal 8: Dilution of Immediate Returns and Compensation Measures** The bank has prepared a report addressing the potential dilution of immediate returns from the A share issuance and related compensation measures [19][20]. - **Proposal 9: Future Shareholder Return Plan** A three-year shareholder return plan (2025-2027) is proposed to ensure reasonable and stable returns for shareholders [21][22]. - **Proposal 10: No Need for Previous Fund Usage Report** The bank states that there is no need to prepare a report on the usage of previously raised funds, as it has not raised funds through certain methods in the last five years [23][24]. - **Proposal 11: Signing of Subscription Agreement** The bank has signed a conditional subscription agreement with the Ministry of Finance for the A share issuance [25][26]. - **Proposal 12: Strategic Investment from the Ministry of Finance** The bank aims to introduce strategic investment from the Ministry of Finance through the A share issuance [21][22]. - **Proposal 13: Authorization for Board to Handle Issuance Matters** The bank seeks authorization for the board to manage all matters related to the A share issuance [22][23].

Core Viewpoint - China Construction Bank (CCB) plans to issue A-shares to specific investors, primarily the Ministry of Finance, to raise up to RMB 105 billion to strengthen its core Tier 1 capital and support sustainable business growth [5][20][25]. Group 1: Issuance Overview - The issuance aims to enhance CCB's risk absorption capacity and optimize its capital structure, aligning with regulatory requirements for TLAC (Total Loss-Absorbing Capacity) [20][21]. - The issuance price is set at RMB 9.27 per share, which is 80% of the average trading price over the 20 trading days prior to the pricing benchmark date [10][11]. - The total number of shares to be issued will not exceed 30% of the total share capital before the issuance [11][12]. Group 2: Use of Proceeds - The funds raised will be used entirely to supplement CCB's core Tier 1 capital, supporting future business development [13][20]. - The issuance is deemed necessary to maintain CCB's role in supporting the real economy and enhancing its risk management capabilities [20][21]. Group 3: Regulatory and Approval Process - The issuance requires approval from the China Banking and Insurance Regulatory Commission, the Shanghai Stock Exchange, and the China Securities Regulatory Commission [3][14]. - The decision for the issuance is valid for twelve months from the date of approval by the relevant shareholder meetings [13]. Group 4: Impact on Financial Metrics - Post-issuance, CCB's net asset scale will increase, potentially leading to a short-term dilution of earnings per share and return on equity, but long-term benefits are expected as capital strengthens [25][27]. - The issuance is projected to improve CCB's capital adequacy ratios, enhancing its ability to withstand financial risks [27][28].

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].