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China Merchants Bank Sells 20 Billion Yuan Bonds
CM BANK (03968.HK) issued 20 billion yuan in capital Bonds.
On April 29, Gelonghui reported that CM BANK (03968.HK) announced that the perpetual capital Bonds (Phase 1) of CM BANK Co., Ltd. would be recorded on April 25, 2025, and completed issuance on April 29, 2025. The issuance scale of this Bonds is 20 billion yuan, with a coupon rate of 2.13% for the first 5 years. The funds raised from this Bonds will be used to supplement the company's Other Tier 1 capital in accordance with applicable laws and regulatory approvals.
CM BANK (600036.SH): The issuance of the perpetual capital bonds is complete.
On April 30, the company announced that CM BANK (600036.SH), approved by the National Financial Supervision and Administration, has recently issued the "2025 Unspecific Capital Bonds of CM BANK Co., Ltd. (Phase 1) (Bond Connect)" in the national interbank bond market (referred to as this phase of bonds). This phase of bonds was recorded on April 25, 2025, and the issuance was completed on April 29, 2025. The issuance scale of this phase of bonds is 20 billion yuan, with a coupon rate of 2.13% for the first 5 years, adjusted every 5 years, and conditional on the issuer for each interest payment date from the 5th year onward.
Hong Kong stocks closed (04.30) | Hang Seng Index rose 0.51%. AI Concept stocks performed strongly. China Mainland Banking stocks weakened after earnings.
The three major Hong Kong stock indices rebounded from the bottom, with the Hang Seng Index stabilizing above 22,000, and the Hang Seng Technology Index rising over 1%, performing the best.
Citigroup: It is expected that CM BANK (03968) will have difficulty maintaining its premium valuation with a Target Price of HKD 41.06.
The statement indicates that although it is believed that China Merchants Bank can still achieve at least positive or flat profit growth for the year, the final profit growth for the entire year may still remain sluggish.
How to understand the negative profit growth of China Merchants Bank?
China Merchants stated that the main reason for the negative profit growth is the adjustment of the bond market leading to a decline in non-interest income, as well as the potential need for provision to deal with the lagging impact of USA tariff policies. Although profits are under short-term pressure, CM BANK's core operation Indicators remain robust. If excluding the impact of one-time bond market adjustments, CM BANK's revenue continues to show a growth trend.
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104255742 : but why is it not buying back its own shares?
Mr Worldwide 世界仔 OP 104255742 : debt to equity at 1.3, it has limited room to take on more debt. it is not worth to repurchase its stock which main business is insurance.