Zhitong Hong Kong Stock Investment Log | April 4th
Hong Kong Stock Investment Log | April 4, 2025
【Special Guest V】Guo Jiayao: The market is focused on external economic data and news about tariff measures, and it is anticipated that the market will continue to fluctuate.
Jinwu Financial News | US stocks fluctuated on Tuesday, with the market early on continuing to be influenced by tariff policy news, along with the latest US economic data performing worse than expected, causing investors' concerns about recession to intensify. After opening lower, the market briefly widened its drop, and then gradually stabilized at lower levels, with the three major indices closing mixed. The US dollar showed positive momentum, and the yield on the ten-year US Treasury bond fell to 4.16%, gold prices continued to reach new highs, while oil prices showed a softer trend. The changes in Hong Kong stock pre-requisites were minimal, and it is expected that the market will lack direction in the early stages. The mainland stock market rose yesterday, with the Shanghai Composite Index opening higher and closing up 0.4%, and the trading volume in the Shanghai and Shenzhen markets slightly decreased. The performance of Hong Kong stocks yesterday.
BANK OF COMMUNICAT To Go Ex-Dividend On April 14th, 2025 With 0.67863 USD Dividend Per Share
HSBC's Stake in BoCom to Dilute Following Planned Share Issuance
Market Chatter: China's Top Banks to Raise 520 Billion Yuan in Capital Boost
Brokerage morning meeting highlights: The industry allocation recommendations for April should focus on two main lines.
At today's Brokerage morning meeting, Galaxy Securities stated that the characteristics of a short-term structural economic recovery remain evident, with industries related to new productive forces performing better; HTSC believes that increased investment in global AI computing power is expected to drive the performance of businesses in sectors such as Optical Communications to remain positive; China Securities Co., Ltd. suggested that the industry allocation recommendations for April should focus on two main lines.
CITIC SEC: The state-owned major banks' capital injection plan has been introduced to achieve both risk prevention and development promotion.
CITIC SEC released a Research Report stating that on March 30, China Construction Bank Corporation, Bank Of China, Bank Of Communications, and Postal Savings Bank Of China announced their plan to raise 520 billion yuan by issuing A-shares to specific investors, with the Ministry of Finance subscribing to 500 billion yuan, and the raised funds will be used to replenish core Tier 1 capital.
It is the "last day" for Consumer loan interest rates below 3%, and many Banks are still rushing to attract customers, fearing increased pressure on future lending.
① Many Banks are promoting a slogan "Last Day of Low Interest Rates", urging customers to quickly check their limits and receive interest rate coupons for withdrawals; ② Several Banks' Crediting personnel are concerned that an increase in Consumer loan rates may lead to a decrease in interest, continuing to increase lending pressure.
How was the pricing scheme for the capital increase of the four major banks determined? Direct coverage of the four major banks' 520 billion "capital increase" meeting.
Senior executives of the four major banks explain the relevant details.
Express News | HSBC - BOCOM Share Issuance Would Result in HSBC's BOCOM Stake Being Diluted From 19.03% to 16.06%
Express News | China's Bank of Communications Board Secretary: Revenue and Profit Growth Still Face Great Pressure, and Challenges of Insufficient Domestic Demand Remain
Express News | China's Bank of Communications Board Secretary: Recapitalisation Plan Is Expected to Increase Core Tier-1 Adequacy Ratio by 1.28 Percentage Points, Enhance Risk Resilience
[Brokerage Focus] Citi: The large state-owned banks' private placement of A-shares helps alleviate net interest margin pressure, but is more Bullish on joint-stock banks.
Jinwu Financial News | Citigroup's Research Reports indicate that the Private Placement of shares by Bank Of China (03988), Postal Savings Bank Of China (01658), China Construction Bank Corporation (00939), and Bank Of Communications (03328) will help alleviate net interest margin pressure and restore lending capacity. This round of Refinancing will respectively raise the core Tier 1 capital adequacy ratios (CET1) of CCB, BOC, PSBC, and BOCOM to 15%, 13.1%, 11.5%, and 11.1%, and will dilute the existing Shareholders' equity to 4.3%, 8.5%, 15.6%, and 17.2%, but will only affect the dividend yield starting from 2025.
Express News | Shares of Bank of China and Bank of Communications up More Than 1% Each After Capital-Injection Plan
China's Big State Banks to Get $71.6 Billion Capital Injection
【Brokerage Focus】CITIC SEC expects that the Banks' performance in Q1 2025 will be the lowest point of the year, with the subsequent trend likely to rise.
According to CITIC SEC, the annual reports released by listed Banks show that in Q4 2024, the revenue and profit growth of listed Banks continued to improve. Analyzing the operational factors, while the Industry's pace of asset expansion in 2024 is converging, the decline in interest margin is also narrowing. Although the annual non-interest income is still decreasing, the decline in Q4 2024 has significantly narrowed, and in the context of a strengthening bond market, trading revenues continue to remain positive. Regarding asset quality, the overall non-performing loan ratio of listed Banks continues to improve, and their risk resilience remains robust. Looking ahead, the interest margin for listed Banks in Q1 2025 is still expected to decline due to the revaluation of existing loans, while investment income may fluctuate due to market influences but is anticipated to be stable.
Large banks are injecting capital, and the four major state-owned Banks plan to raise up to 520 billion yuan to supplement their capital.
Jingwu Financial News | Major state-owned banks have begun to initiate A-shares capital increase plans. Recently, Bank Of China, China Construction Bank Corporation, Postal Savings Bank Of China, and Bank Of Communications have successively disclosed plans to issue A-shares specifically to the Ministry of Finance and other Institutions, with a total fundraising scale not exceeding 520 billion yuan. The funds will be specifically used to strengthen core tier one capital and enhance the capacity to serve the real economy. Bank Of China (03988) plans to issue approximately 27.272 billion A-shares at 6.05 yuan per share (RMB), raising no more than 165 billion yuan. After deducting expenses, all of it will be used to replenish core tier one capital, while the Ministry of Finance will directly hold the expanded amount.
The Ministry of Finance actively supports the large state-owned commercial Banks in replenishing their core Tier 1 capital.
① The Ministry of Finance will issue the first batch of 500 billion yuan special government bonds in 2025, which will be used to support the Bank Of China, China Construction Bank Corporation, Bank Of Communications, and Postal Savings Bank Of China in replenishing their core Tier 1 capital; ② Currently, state-owned large commercial banks are operating steadily, with stable asset quality and sufficient provisions. Supplementing capital through special government bonds will enhance their robust operational capability, promote high-quality development, and better serve the real economy.
Brokerage morning meeting highlights: Focus on economic performance exceeding expectations or new catalysts in Technology, and emphasize structural opportunities in Technology and the pro-cyclical main line.
At today's Brokerage morning meeting, China Securities Co.,Ltd. suggested focusing on the economy exceeding expectations or new catalysts in Technology, emphasizing structural opportunities in Technology and pro-cyclical main lines; KSY Securities believes that the overall Hong Kong stock market has not yet entered a full bull market rally stage; HTSC stated that the overall lithium battery production scheduling in April has improved month-on-month, Bullish on the marginal continuous improvement of supply and demand in the Industry Chain.
Four Large State-owned Banks Recapitalise