--- title: "Goldman Sachs: It is rumored that ICBC and ABC will receive capital injection from authorities, which may lead to up to 7% earnings dilution" description: "Goldman Sachs reports that Chinese authorities plan to inject 300 billion yuan into ICBC and ABC, which may lead to a dilution of earnings per share by 4% to 7%. If the injection is realized, the bank" type: "news" locale: "en" url: "https://longbridge.com/en/news/274489615.md" published_at: "2026-02-02T08:35:44.000Z" --- # Goldman Sachs: It is rumored that ICBC and ABC will receive capital injection from authorities, which may lead to up to 7% earnings dilution > Goldman Sachs reports that Chinese authorities plan to inject 300 billion yuan into ICBC and ABC, which may lead to a dilution of earnings per share by 4% to 7%. If the injection is realized, the banks will be better able to meet the demand for credit growth and may increase dividends. Goldman Sachs maintains a neutral rating on ICBC and ABC, with target prices of 5.8 yuan and 4.95 yuan, respectively, believing that the scale and impact of the injection still carry uncertainties Goldman Sachs published a research report indicating that recent foreign media cited sources stating that Chinese authorities plan to inject 300 billion yuan into two major state-owned banks, ICBC (01398.HK) and ABC (01288.HK). Goldman Sachs stated that it does not comment on the rumor but assesses the potential impact, predicting that if true, it would lead to a dilution of earnings per share by 4% to 7% for both banks, with the expected dilution of net asset value by up to 2%, while the core Tier 1 capital ratio could increase by 54 to 61 basis points. Goldman Sachs believes that new capital generally helps banks maintain growth and dividend distribution. If the injection is realized, large banks will be able to respond more effectively to the credit growth demand brought about by economic recovery and maintain or even increase dividends. It predicts that, assuming the risk-weighted asset density remains unchanged, ICBC and ABC could raise their dividend payout ratios by about 1.2 to 2.3 percentage points, maintaining the same per-share dividend while not affecting the growth of risk-weighted assets. In terms of stock selection, Goldman Sachs prefers China Construction Bank (00939.HK) and Bank of China (03988.HK), which have completed capital replenishment and have more robust balance sheets, as well as China Merchants Bank (03968.HK), which has greater potential for dividend increases. Currently, it maintains a "neutral" rating on ICBC and ABC, with target prices of HKD 5.8 and HKD 4.95, respectively, believing that there is still uncertainty regarding the potential scale, timing, valuation, and impact on earnings per share and net asset value of the injection ### Related Stocks - [01398.HK - ICBC](https://longbridge.com/en/quote/01398.HK.md) - [512820.CN - WP CSI Banks ETF](https://longbridge.com/en/quote/512820.CN.md) - [601398.CN - ICBC](https://longbridge.com/en/quote/601398.CN.md) - [512800.CN - Hwabao WP CSI Banks ETF](https://longbridge.com/en/quote/512800.CN.md) - [517900.CN - China Merchants CSI BANK AH Price ETF](https://longbridge.com/en/quote/517900.CN.md) - [515020.CN - ChinaAMC CSI Banks ETF](https://longbridge.com/en/quote/515020.CN.md) - [516210.CN - Huaan CSI Banks ETF](https://longbridge.com/en/quote/516210.CN.md) - [601288.CN - ABC](https://longbridge.com/en/quote/601288.CN.md) - [159887.CN - Fullgoal CSI 800 Banks ETF](https://longbridge.com/en/quote/159887.CN.md) - [510650.CN - ChinaAMC SSE Financials Sector ETF Initiating Fund](https://longbridge.com/en/quote/510650.CN.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | Buy IndusInd Bank; target of Rs 1100: Emkay Global Financial | Emkay Global Financial has upgraded IndusInd Bank to a 'BUY' rating from 'Reduce', raising the target price to Rs 1,100 | [Link](https://longbridge.com/en/news/276562203.md) | | JPMorgan Downgrades Agricultural Bank of China to Neutral from Overweight; Price Target is HK$6.10 | JPMorgan Downgrades Agricultural Bank of China to Neutral from Overweight; Price Target is HK$6.10 | [Link](https://longbridge.com/en/news/272963303.md) | | Hong Kong’s West Kowloon arts hub secures HK$3 billion, 10-year loan facility | The West Kowloon Cultural District Authority in Hong Kong has secured a HK$3 billion, 10-year loan from ICBC (Asia) to a | [Link](https://longbridge.com/en/news/275930491.md) | | E-Commodities Subsidiary Hainan More Richway Secures RMB210 Million Bank Facilities | E-Commodities Holdings Limited announced that its subsidiary, Hainan More Richway, has secured RMB210 million in bank fa | [Link](https://longbridge.com/en/news/273876939.md) | | Agricultural Bank of China Appoints Zhang Hongwu as Non-Executive Director | Agricultural Bank of China Ltd. has appointed Mr. Zhang Hongwu as a non-executive director, pending approval from releva | [Link](https://longbridge.com/en/news/274312277.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.