JPMorgan released a report stating that china is planning to inject 1 trillion yuan into large state-owned banks. The bank predicts that if the issuance is based on a tracking book value of one time, it may dilute the return on equity by 56 basis points and dilute earnings per share by 7.1%; if it is based on market price issuance, it may dilute earnings per share by 11.2%. The bank estimates that if the current rebound of state-owned banks continues, it believes there is significant upside potential. However, due to concerns about the risks of serving state policies and the asset quality cycle, the performance of state-owned banks may lag behind the market and high-growth banking stocks (such as China Merchants Bank and Bank of Shanghai). The bank has lowered the target price of Bank of Communications from HK$6.1 to HK$5.8 and rated it as "neutral".