Bank of Communications addresses regulatory inquiry on share issuance

Bank of Communications (SSE:601328) has responded to an inquiry from the Shanghai Stock Exchange regarding its application for issuing shares to specific objects. The response addresses administrative penalties received by the bank and its subsidiaries, noting that between January 1, 2022, and December 31, 2024, the bank incurred fines exceeding CNY 100,000 in 202 cases, totaling CNY 18,044,160. The bank maintains that these penalties do not constitute major violations or significantly harm investor rights and therefore do not impede the share issuance. The response also discusses four pending lawsuits with a combined value of CNY 60,900,000, clarifying that adequate provisions have been made, or are considered unlikely to result in a material adverse effect on the bank's operations or financial condition. The underwriters and legal counsel have affirmed that the administrative penalties and ongoing litigations do not represent significant legal obstacles to the proposed share issuance.