National AMC Approved to Increase Stake in China Construction Bank, Reinforcing Allocation Logic for High-Dividend Banks

Corporate Action

โดย 21世纪经济·

Summary · why it matters

China Great Wall Asset Management has been approved to increase its stake in China Construction Bank, with the additional shares not exceeding 1.99% of the bank's total share capital. After the increase, its total holdings will not exceed 5% of total share capital. This marks the first time this year that a national financial asset management company has received regulatory approval to increase its stake in a listed bank. Analysts point out that the national AMC's real-money commitment to a major state-owned bank directly dispels the market's excessive pessimism about bank asset quality and the resolution of real estate non-performing loans. It validates the allocation value of major state-owned banks with high dividends and low price-to-book ratios, and may attract long-term capital to follow suit. Following China CITIC Financial Asset Management's investments in China Everbright Bank and Bank of China, and Cinda Asset Management and Dongfang Asset Management's investments in Shanghai Pudong Development Bank, Great Wall's increased stake in China Construction Bank means all four major AMCs have now completed their strategic positioning in leading state-owned and joint-stock banks. The bank-AMC non-performing loan linkage has become a standardized industry cooperation model. AMCs' long-term, large-scale shareholdings represent stable equity capital, indirectly bolstering market confidence in bank capital and alleviating concerns about bank capital adequacy ratios.

China Construction Bank Co ▲