Core Viewpoint - The issuance of the third phase of total loss-absorbing capacity non-capital bonds by Bank of Communications demonstrates strong market demand and effective capital management strategies [1] Summary by Categories Issuance Details - The total issuance scale of the bonds is 30 billion yuan, with a maturity of 3+1 years [1] - Fixed-rate bonds account for 26 billion yuan with a coupon rate of 1.93%, achieving a subscription rate of 1.97 times [1] - Floating-rate bonds total 4 billion yuan with an initial coupon rate of 1.94%, linked to the 60-day average of the 7-day repo rate (DR007), and a subscription rate of 1.77 times [1] Market Conditions - The issuance took advantage of favorable market conditions, allowing for an oversubscription of 20 billion yuan beyond the base issuance of 10 billion yuan [1]

Core Points - China Bank has completed the issuance of the first phase of Total Loss-Absorbing Capacity (TLAC) non-capital bonds for 2025, following regulatory approval [1][3] - Agricultural Bank and Bank of Communications have also issued their respective TLAC bonds recently, indicating a trend among major banks to enhance their capital structures [3][5] - The issuance of TLAC bonds is aimed at meeting international regulatory requirements and improving the international competitiveness of China's Global Systemically Important Banks (G-SIBs) [6][7] Summary by Category Issuance Details - China Bank issued TLAC non-capital bonds worth 500 million RMB on July 10, 2023, after approval from regulatory authorities [3][5] - Agricultural Bank issued TLAC bonds worth 300 million RMB on June 30, 2023, and Bank of Communications completed its issuance on June 16, 2023 [3][5] - The approved issuance limits for the banks are 600 billion RMB for Industrial and Commercial Bank, 1800 billion RMB for Agricultural Bank, 1500 billion RMB for China Bank, and 3000 billion RMB for Bank of Communications [5] Regulatory Context - TLAC non-capital bonds are designed to help G-SIBs meet loss-absorption requirements, which are crucial for maintaining financial stability [5][6] - The first phase of TLAC compliance for four major banks is set for early 2025, while Bank of Communications has until 2027 to meet its requirements [5] Strategic Implications - The issuance of TLAC bonds is seen as an opportunity for banks to strengthen their capital base and enhance their operational capabilities [6][7] - Industry experts believe that the focus on TLAC compliance will lead to improved risk management and service to the real economy [7]

Core Points - Agricultural Bank of China (ABC) shares closed at 6.03 yuan on July 4, 2025, up 2.55% from last week’s 5.88 yuan, with a market cap of 21,103.98 billion yuan, ranking 3rd among state-owned large banks and 4th among A-shares [1] - ABC issued a total of 300 billion yuan in non-capital bonds to enhance its total loss-absorbing capacity, with three bond types: 150 billion yuan at 1.83% for 4 years, 30 billion yuan at 1.87% for 6 years, and 120 billion yuan at 2.06% for 11 years [1] Company Announcements - As of June 30, 2025, ABC's registered capital remained unchanged, with H-shares and A-shares at 30,738,823,096 yuan and 319,244,210,777 yuan respectively, totaling 349,983,033,873 yuan [2][3] - The number of issued shares for both H-shares and A-shares remained stable at 30,738,823,096 shares and 319,244,210,777 shares, with zero treasury shares [2]