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<Research>G Sachs Expects Major CN Banks to Maintain DPS Payments in 2025-26; BANK OF CHINA/ ABC/ ICBC to Benefit from Govt Capital Injections
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As the "Two Sessions" will be convened in the coming month when Chinese banks are set to release their 2024 full-year results, the restructuring of bank capital structures is likely to become a focal point for investors, according to a Goldman Sachs report.

In Goldman Sachs' estimate, major state-owned banks may use new capital to maintain dividend distributions in 2025 and 2026, and they may still have surplus capital under the forecasted 8.5% loan growth in 2025.

As per the broker's 2025 outlook for Chinese banks, BANK OF CHINA (03988.HK), ABC (01288.HK), and ICBC (01398.HK) will benefit from government capital injections. It also gave CM BANK (03968.HK) a Buy rating.
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