Bank of Communications Bolsters Capital With Bond Issue
The Bank of Communications (03328.HK) has completed the issuance of 30 billion yuan subordinated bonds.
Bank of Communications (03328.HK) announced on July 26th that the shareholder meeting approved the proposal to issue write-down second-tier capital bonds in RMB or equivalent foreign currency not exceeding RMB 100 billion before the end of 2024. In November 2023 and April 2024, the bank respectively issued RMB 30 billion and RMB 26 billion in second-tier capital bonds on the national interbank bond market. Recently approved by the China Banking and Insurance Regulatory Commission and the People's Bank of China, Bank of Communications has issued the second phase of its 2024 second-tier capital bonds on the national interbank bond market.
Express News | Bank of Communications - Issuance of Bonds Was Completed on 26 July With a Total Issuance Scale of RMB30 Bln
Express News | Bank of Communications -Successful Issue of Tier-2 Capital Bonds
Banks stocks generally decline, CM Bank (03968) falls 4.35%, Guolian Securities points out that there may be increased pressure on bank interest spreads.
Bank stocks fell across the board, with CM Bank (03968) down 4.35%, CEB Bank (06818) down 2.89%, Minsheng Bank (01988) down 2.87%, and Bank of Communications (03328) and China Citic Bank Corporation (00998) following suit. On the news front, ICBC and ABC will adjust RMB deposit rates from July 25, with the largest reduction in the interest rate for fixed deposit of more than two years, which is 20 basis points. As of the time of publication, the official websites of BOC and CCB have not yet made adjustments, but they are expected to do so soon. According to the information on the ICBC website, the latest policy will be implemented from July 25.
Hong Kong stocks fluctuate | CM Bank (03968) falls more than 4%, leading the decline in China Mainland Banking. The central bank optimizes the interest rate system, but the interest rate spread of banks still continues to narrow.
China mainland banking stocks continued to decline in the morning session. As of press time, CM Bank (03968) fell 4.2%, to HKD 31.95; Minsheng Bank (01988) fell 3.94%, to HKD 2.68; Bank of Communications (03328) fell 2.93%, to HKD 5.64; and China Construction Bank Corporation (00939) fell 2%, to HKD 5.39.
Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Bank of Communications, and Bank of China have simultaneously lowered their deposit rates.
On July 25th, the five major banks including ICBC, China Construction Bank, Agricultural Bank of China, Bank of China, and Bank of Communications simultaneously lowered their deposit interest rates. Among them, the three-month, six-month, and one-year fixed deposit rates were all lowered by 10 basis points, respectively 1.05%, 1.25%, and 1.35%; the two-year, three-year, and five-year fixed deposit rates were all lowered by 20 basis points, respectively 1.45%, 1.75%, and 1.8%. This means that if you deposit 1 million yuan for a tenure of 5 years, the interest received will decrease from the previous 0.1 million yuan to 0.09 million yuan, a decrease of approximately 0.01 million yuan.
Express News | China Construction Bank Announces 10-20 Basis Point Reduction in Time Deposit Rates - Statement
Hong Kong stocks fluctuate | China mainland banking rises again, Agricultural Bank of China (01288) rises by more than 3% during trading, and bank deposit interest rates are expected to usher in a new round of cuts.
China mainland banking is rising again. As of press time, Agricultural Bank of China (01288) rose 2.6% to HKD 3.55; Industrial and Commercial Bank of China (01398) rose 2.07% to HKD 4.43; Bank of Communications (03328) rose 1.92% to HKD 5.84.
Citic Sec: Banks sector is expected to continue to recover positions, recommending two main lines.
As of Q2 2024, banks accounted for 2.45% of the heavyweight stocks held by active funds, up 0.21pct from Q1 2024.
Unusual movements observation | China mainland banking generally rose, the impact of interest rate cuts on bank interest spreads is limited, and state-owned banks are considering lowering deposit listing rates.
On July 23rd, China mainland banking stocks generally rose, as of press time, CQRC Bank (03618.HK) rose 3.63%, reported HKD 4.00; Bank of Chongqing (01963.HK) rose 2.6%, reported HKD 5.13; Agricultural Bank of China (01288.HK) rose 2.35%, reported HKD 3.48; Postal Savings Bank of China (01658.HK) rose 2.19%, reported HKD 4.20; Bank of Communications (03328.HK) rose 1.94%, reported HKD 5.77. Quote source: Futubull. On July 22nd, the latest news
Bank stocks are rising collectively. Bank of Chongqing (01963) rose by 2.8%. Institutions point out that interest rate cuts are not bad for the mid-term fundamentals of banks.
Jinwu Finance News | Bank stocks rise collectively, cqrc bank (03618) up 3.63%, bank of chongqing (01963) up 2.8%, agricultural bank of china (01288) up 2.65%, postal savings bank of china (01658) up 2.19%, bank of communications (03328) up 2.12%, industrial and commercial bank of china (01398) up 2.1%, china citic bank corporation (00998) up 1.98%. GF Sec stated that in the short term, LPR cuts will reduce bank interest rate spreads. If the central bank hedges or the government launches fiscal stimulus, bond yield spreads may widen and interest rate pressure may be alleviated.
Bank of Communications (03328) plans to issue the second subordinated capital bond within the year, with a amount of 30 billion yuan and a maximum term of 15 years in the Hong Kong Stock Connect.
Jingu financial information | Bank of Communications (03328) announced that it plans to issue the second phase of Tier 2 capital bonds due 2024, with a total issue size of RMB 30 billion, of which RMB 20 billion is the basic issue size for variety one and RMB 10 billion is the basic issue size for variety two. Variety one is a 10-year fixed-rate bond with conditional redemption rights for the issuer at the end of the fifth year. The issuer has the right to redeem part or all of the bonds at face value subject to approval by the China Banking and Insurance Regulatory Commission. Variety two is a 15-year fixed-rate bond with conditional redemption rights for the issuer at the end of the 10th year. Fundraising.
The subscription principal of the tongdao liepin is 80 million yuan in the Bank of Communications wealth management product.
Tongdao Liepin (06100) announced that on July 17, 2024, the company subscribed to the Bank of Communications Yuntong Wealth Structured Deposit 180 days (Cumulative Range Accrual) with a principal of RMB 80 million through its wholly-owned subsidiary Tongdao Elite (Tianjin) Information Technology Co., Ltd. ("Subscription Matters"). In addition, on June 3, 2024, the company subscribed to the Bank of Communications Yuntong Wealth Structured Deposit 187 days (hooked to exchange rates) with a principal of RMB 50 million through its wholly-owned subsidiary Tongdao Elite (Tianjin) Information Technology Co., Ltd.
CMBC Capital purchased notes with a principal amount of 7 million US dollars.
CMBC Capital (01141) announced that on July 17, 2024, its wholly-owned subsidiary, Minsheng Investment (Hong Kong), has purchased notes with a principal amount of 7 million US dollars in the OTC market, with a total cost of about 7.0269 million US dollars. The issuer is Huarong International Leasing Management (Hong Kong) Co., Ltd.
Tongdao Liepin (06100) subscribed to a Bank of Communications wealth management product with a subscription principal of 80 million yuan.
Tongdao Liepin (06100) announced on July 17, 2024 that the company, through its wholly-owned subsidiary, has ...
GTJA Securities: Diluting the obsession with scale and embracing the new norm of social financing.
PBOC Governor Pan Gongsheng pointed out at the Lujiazui Forum that when the growth of monetary and credit has shifted from supply constraints to demand constraints, if the focus is still on the increase in quantity even in the presence of a "size bias", it obviously contradicts the laws of economic operation. It is expected that the motivation behind banks using bills to pledge loans will significantly weaken, and more attention will be paid to the adjustment of loan structure and improvement of business quality and efficiency. Both social financing and credit will enter a "new normal" of growth.
At the end of June, the balance of foreign currency loans in Shanghai reached 11.85 trillion yuan, up 8.6% year-on-year, according to the Shanghai branch of the People's Bank of China.
On July 15, the Shanghai headquarters of the People's Bank of China released the running status of MMF and crediting in Shanghai for the first half of 2024.
swhy: Grasping the certainty of undervalued banks' performance bottoming out.
Whether it is the fund-driven approach in the low-dividend and low-volatility strategy or the fundamental changes in profit stability and marginal improvement, the banking sector will gain relatively considerable absolute and relative returns throughout the year. It is advisable to actively invest at this point.
GF Sec: A summary of the quota and usage of interbank certificates of deposit in the first half of 2024.
Under the policy guidance of idle funds pressure, it is unlikely that state-owned banks will update their filing quotas within the year. In history, only a few urban and rural commercial banks have updated their filing quotas due to the scale of their deposit certificates exceeding the filing quotas, and state-owned banks have no precedent yet.
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