The Six Major Banks Launched "Corporate Value and Return Enhancement" Actions, with Multiple Measures for Promoting High-quality Development

Shanghai Securities News, www.cnstock.com         He Xinyi

On the evening of March 28, Industrial and Commercial Bank of China Limited, Agricultural Bank of China Limited, and China Construction Bank Corporation newly disclosed their "corporate value and return enhancement" action plans. So far, the plans of the six major banks have all been in place. These action plans have four main features:

First, they focus on stable operations and improve the quality and efficiency of serving the real economy. The six major banks implement the new development concept and concentrate on high-quality development. For example, Agricultural Bank of China Limited takes green and sustainable development as its background and integrates it into strategic management. Postal Savings Bank of China Co., Ltd. strives to be a benchmark bank for inclusive finance.

Second, they optimize the governance system to strengthen responsibility. This involves continuously improving the corporate governance mechanism, reinforcing the development of the Board of Directors, optimizing the personnel structure, ensuring directors' performance of duties, and enhancing supervision efficiency. Meanwhile, efforts are made to boost capital strength and stabilize the capital adequacy ratio. Furthermore, they lay greater emphasis on investor interests and refine the implementation of requirements of independent directors and shareholder returns.

Third, they improve the cash dividend plan to enhance investors' sense of gain. The six major banks attach significance to shareholder returns and all have specified "cash dividends" in their plans. Bank of China Limited has distributed dividends of over 900 billion yuan in total since its listing in 2006. In the future, it will also give priority to cash dividends and enhance stability and predictability. The annual cash distribution profit of Bank of Communications Co., Ltd. in the next three years (2025-2027) will be no less than 30% of the net profit attributable to the parent company of that year.

Fourth, they adopt an "investor-centered" approach to improve the quality and efficiency of information disclosure. Many major banks will maintain close communication with investors in an active and frank manner through various forms such as performance briefings and visit receptions, following the principle of "being concise, clear, and easy to understand". They will also utilize "one picture", "short videos", and other methods to promote their performance, thereby improving the efficiency of investment value transmission.

The above information is provided for reference purposes only and does not constitute investment advice.