Postal Savings Bank of China plans CNY 130bn A-share issuance

Postal Savings Bank of China (SSE:601658) has announced plans to issue A-shares to specific investors to raise approximately CNY 130 billion, aimed at strengthening its core tier-one capital. The planned issuance, comprising no more than 30% of the bank's existing share capital, will be directed towards the Ministry of Finance, China Mobile Group, and China Shipbuilding Group. The bank has already received approval from the Shanghai Stock Exchange and is awaiting further regulatory clearances. The shares will be priced at CNY 6.32 per share, based on the average trading price 20 days before the board resolution. The Ministry of Finance intends to subscribe for 18,604,420,886 shares, China Mobile Group for 1,242,731,123 shares, and China Shipbuilding Group for 722,468,243 shares, to strengthen its capital position and is in line with regulatory guidelines to support the real economy. Proceeds will reinforce its financial stability and bolster its capacity for lending and risk management. The move aligns with national strategies to enhance financial services in key sectors.