JPMorgan's report pointed out that there are rumors that China plans to inject 1 trillion yuan of capital into large state-owned banks. If the bank issues shares at double the book value, it may dilute the return on equity by 56 basis points and dilute earnings per share by 7.1%; if issued at market price, it could dilute earnings per share by 11.2%.

The bank estimates that if the current rebound of state-owned banks continues, there is believed to be significant upside potential. However, due to concerns about policy risks and asset quality cycles, the performance of state-owned banks may lag behind the market and high-growth bank stocks (such as China Merchants Bank and Shanghai Pudong Development Bank). The bank has lowered the target price of Bank of Communications (03328.HK) from 6.1 yuan to 5.8 yuan, rating it as 'Neutral'.