The People's Insurance Group announced the issuance of no more than 15 billion yuan of new A-share capital to the Ministry of Finance, the largest shareholder. Bank of America Securities published a report stating that in the first half of 2026, the Ministry of Finance held about 60.8% of the group's total share capital and about 75.8% of A-shares. The placement price will be determined based on the average price for the previous 20 trading days after shareholders' and regulatory approval and when the official issuance date is announced. The bank believes that dilution is limited, keeping the profit forecast and target price unchanged, and reaffirms the “buy” rating of H shares, with a target price of HK$7.8. Since the premium of A shares is about 50% over H shares, the bank gave A-shares a “outperforming the market” rating, with a target price of 6.76 yuan. The bank expects capital raising to be completed by the end of 2026. Real-time dilution will mainly affect the 2026 return on equity, book value per share and dividend per share. According to estimates, if the placement price were $5.8, $7 and $8, respectively, the return on equity would decrease by 0.3 percentage points; the book value per share would decrease by 1.4%, decrease 0.4% and increase by 0.2%, respectively; and dividends per share would decrease 5.5%, 4.6% and 4.1%, respectively. The overall dilution is limited, and the potential gains that may be brought about by capital injections are not taken into account. The dilution should be even lower after new capital starts contributing in 2027.

The People's Insurance Group announced the issuance of no more than 15 billion yuan of new A-share capital to the Ministry of Finance, the largest shareholder. Bank of America Securities published a report stating that in the first half of 2026, the Ministry of Finance held about 60.8% of the group's total share capital and about 75.8% of A-shares. The placement price will be determined based on the average price for the previous 20 trading days after shareholders' and regulatory approval and when the official issuance date is announced. The bank believes that dilution is limited, keeping the profit forecast and target price unchanged, and reaffirms the “buy” rating of H shares, with a target price of HK$7.8. Since the premium of A shares is about 50% over H shares, the bank gave A-shares a “outperforming the market” rating, with a target price of 6.76 yuan. The bank expects capital raising to be completed by the end of 2026. Real-time dilution will mainly affect the 2026 return on equity, book value per share and dividend per share. According to estimates, if the placement price were $5.8, $7 and $8, respectively, the return on equity would decrease by 0.3 percentage points; the book value per share would decrease by 1.4%, decrease 0.4% and increase by 0.2%, respectively; and dividends per share would decrease 5.5%, 4.6% and 4.1%, respectively. The overall dilution is limited, and the potential gains that may be brought about by capital injections are not taken into account. The dilution should be even lower after new capital starts contributing in 2027.