Investment Rating - The report maintains a positive outlook on the banking sector, suggesting that several banks are undervalued based on their asset quality and excess provisioning metrics [4][3]. Core Insights - The valuation premium of banks typically arises from their middle-income and liability advantages, while valuation discounts are often due to concerns over asset quality [2][10]. - The report introduces two key indicators: "broad non-performing asset ratio" and "excess provisioning profit multiple" to objectively assess and compare the current asset quality status of banks [2][10]. - A total of 56 AH-listed banks are analyzed, expanding from the previous report's focus on 42 A-share listed banks, to provide a comprehensive overview of excess provisioning levels and trends [2][10]. Summary by Sections 1. Introduction: Significance of Asset Quality - The report emphasizes the importance of objectively assessing asset quality, as it significantly impacts bank valuations and performance [10]. 2. How to Objectively Assess Bank Non-Performing Assets - Traditional asset quality indicators may not accurately reflect the true provisioning situation due to inconsistent standards and incomplete coverage of assets [14]. - The report proposes a "broad non-performing asset ratio" to better capture the credit risk within banks [14][15]. 3. Construction of Excess Provisioning Profit Multiple Indicator - The excess provisioning profit multiple is constructed to measure the performance elasticity of banks, indicating their potential for future earnings recovery [7][14]. - The report highlights that banks with higher excess provisioning ratios, such as Hangzhou Bank, show strong risk mitigation capabilities [7][14]. 4. Valuation from the Perspective of Broad Excess Provisioning - The long-term correlation between bank valuation levels and ROE is noted, with excess provisioning contributing to performance and valuation improvements [3][4]. - Several banks, including Wuxi Bank and Agricultural Bank (H), are identified as being significantly above the PB-excess provisioning profit multiple regression line, indicating potential investment opportunities [3][4].

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 徽商銀行股份有限公司 呈交日期: 2025年10月8日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 03698 | 說明 | H股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 3,478,750,000 | RMB | | 1 | RMB | | 3,478,750,000 | | 增加 / 減少 (-) | | | | | | | RMB | | | | 本月底結存 | | | 3,478,750,000 | RMB | | 1 | RMB | | 3,478,750,000 | | ...

Core Viewpoint - Huishang Bank has demonstrated a high-quality development performance in the first half of 2025, achieving growth in both revenue and net profit while maintaining a leading position among city commercial banks [1][2]. Financial Performance - In the first half of 2025, Huishang Bank reported operating income of 21.157 billion yuan, a year-on-year increase of 2.25%, and net profit of 9.328 billion yuan, up 3.81% [1]. - The total assets reached 2,251.854 billion yuan, growing by 11.82% from the beginning of the year, while total liabilities increased by 12.59% to 2,085.296 billion yuan [2]. - Customer loans and advances totaled 1,100.533 billion yuan, a growth of 9.82%, and customer deposits reached 1,252.004 billion yuan, up 9.92% [2]. Asset Quality - As of June 2025, the non-performing loan ratio was 0.98%, a decrease of 0.16 percentage points year-on-year, marking three consecutive years of decline [3]. - The non-performing loan provision coverage ratio improved to 289.94%, an increase of 17.43 percentage points year-on-year, indicating enhanced risk mitigation capabilities [3]. Business Innovation and Service Enhancement - Huishang Bank has focused on transforming corporate business and enhancing service capabilities, with investment banking and transaction banking becoming key growth drivers [4]. - The bank's cash management business saw a transaction volume of 3.87 trillion yuan, with 16,881 signed clients, reflecting a growth of 10.05% [4]. - In foreign trade finance, the bank processed a cross-border settlement volume of 8.870 billion USD, up 47.82% year-on-year, and cross-border RMB settlements reached 9.555 billion yuan, growing by 18.73% [4]. Digital Transformation and Risk Control - The bank is advancing its digital transformation strategy, enhancing personal financial services and increasing the number of personal clients to over 21 million [6]. - A comprehensive digital risk control system has been established, utilizing big data and AI to improve risk identification and management [9]. Future Outlook - Huishang Bank aims to solidify its growth engine by expanding its quality customer base and enhancing refined management practices to support the development of Anhui province [10].

Core Viewpoint - The implementation of the new regulatory policy, referred to as the "Assisted Loan New Regulations," will significantly reshape the landscape of the assisted loan industry by establishing clear compliance boundaries for commercial banks' internet-assisted loan businesses [1][3]. Group 1: Regulatory Changes - The new regulation, effective from October 1, 2025, mandates commercial banks to adopt a "list management" system for assisted loan cooperation institutions, which has led to a lack of transparency regarding the cooperation lists of major banks [4][5]. - The regulation imposes strict controls on "comprehensive financing costs," particularly targeting products with annualized comprehensive costs exceeding 24%, which poses a challenge to existing business models in the assisted loan sector [1][9]. Group 2: Market Dynamics - The disclosed cooperation lists indicate a trend where major internet giants are preferred partners for banks, leading to a concentration of funds and resources in the hands of a few leading institutions [5][6]. - Various banks have begun to reveal their cooperation lists, with significant participation from both state-owned and private banks, although the six major state-owned banks have yet to disclose their lists [4][6]. Group 3: Business Models and Strategies - Banks like Ping An Bank have developed platforms such as the "Smart Loan Platform" to enhance compliance and safety while expanding their internet credit ecosystem, reflecting a shift towards more regulated and secure lending practices [7]. - Some banks are reconsidering their involvement in assisted loan businesses due to high default rates and rising customer acquisition costs, which are compressing profit margins [7]. Group 4: Financial Implications - The new regulations are expected to create a significant stratification in funding sources, with high-interest assets losing bank support while assets with annualized rates below 24% become highly competitive [9][10]. - Trust funds have seen a temporary increase in demand as an alternative funding source, but their higher costs and regulatory constraints limit their sustainability [10]. Group 5: Regulatory Focus Post-Implementation - Post-implementation, regulatory scrutiny will focus on pricing transparency and comprehensive cost control, particularly regarding the inclusion of service fees in the overall financing costs [11]. - The regulatory authorities will also evaluate banks' risk management capabilities and their adherence to core responsibilities in the assisted loan sector [11].

Core Viewpoint - The article highlights the efforts of Huishang Bank Beijing Branch in enhancing public awareness and ability to identify counterfeit currency through a series of promotional activities during the anti-counterfeit currency awareness month in September, under the theme "Building a Strong Anti-Counterfeit Currency Safety Net to Protect the Public's Wallets" [1] Group 1: Promotional Activities - The bank established its main promotional base in its service halls, displaying anti-counterfeit currency brochures and posters prominently, and providing QR codes for customers to learn about anti-counterfeit knowledge while conducting their banking transactions [2] - The bank organized community outreach events, such as participating in the "Harvest Neighborhood Festival" to educate residents on counterfeit currency identification techniques through interactive activities [6][7] - A themed event titled "Donate Books for Green Plants, Anti-Counterfeit Currency with Me" was held in the Tianshuiyuan West Community, where the bank provided financial knowledge consultations and practical methods for identifying counterfeit currency [10] Group 2: Targeted Outreach - The bank conducted targeted outreach to specific demographics, including a visit to the Haidian District Elderly Cadre Bureau to educate the elderly on counterfeit currency prevention and common scams [13] - Educational sessions were held at Capital University of Economics and Business and Fengtai Yihai Middle School to raise awareness among young people about currency security features and identification methods [16] Group 3: Merchant Engagement - The bank engaged with merchants in a grid-based responsibility area, providing door-to-door services to educate them on counterfeit currency identification and the legal implications of selling counterfeit currency [19] - The initiative included distributing promotional materials and ensuring merchants are equipped with updated cash handling equipment to enhance financial security in their operations [19] Group 4: Future Commitment - Huishang Bank Beijing Branch plans to continue enhancing the public's ability to identify counterfeit currency and fulfill its corporate social responsibility by contributing to a safe and healthy currency circulation environment [22]

Core Viewpoint - The article highlights the efforts of Huishang Bank Nanjing Branch in promoting electronic payment solutions to assist businesses in their digital transformation and enhance payment efficiency [1] Group 1: Electronic Payment Promotion - Huishang Bank Nanjing Branch conducted a promotional event titled "Smart Payment Empowering Enterprises" to educate local businesses about electronic payment [1] - The bank staff detailed the advantages of electronic payments, including convenience, quick fund transfer, and clear transaction records [1] - Demonstrations of various electronic payment tools such as mobile banking, QR code payments, and corporate online banking were provided during the event [1] Group 2: Customized Solutions for Businesses - The bank focused on explaining how electronic payments can reduce operational costs and improve fund management efficiency for financial personnel in businesses [1] - Customized payment solutions were offered to meet the specific needs of enterprises [1] Group 3: Security Awareness - The promotional activities included distributing brochures and interactive Q&A sessions to raise awareness about electronic payment security [1] - Employees were reminded to be vigilant against payment risks to protect both corporate and personal accounts [1] Group 4: Future Initiatives - The event received a positive response from employees, and Huishang Bank Nanjing Branch plans to continue promoting electronic payment applications among small and micro enterprises [1] - The initiative aims to help businesses reduce costs and increase efficiency, thereby injecting financial vitality into the real economy [1]

Core Viewpoint - The article discusses a significant loan fraud case involving Huaneng Trust, a state-owned trust company, and its partners, which has resulted in over 1.7 billion yuan in unrecoverable trust funds. The case highlights severe regulatory and compliance failures within the financial industry, particularly in risk management and internal controls [4][5][17]. Summary by Sections Background of the Case - The fraud case, known as the "Credit Insurance Loan" scheme, began in June 2019 when Huaneng Trust partnered with Huishang Bank and a local insurance company to create a loan product designed to share risks among multiple parties [7]. - The scheme was initially presented as a financial innovation aimed at mutual benefits, but it devolved into a fraudulent operation involving collusion among various parties [5][6]. Mechanism of the Fraud - The fraud was orchestrated by Chi Jinlong, the actual controller of Shenzhen Xingrui Information Technology Co., who manipulated the loan process by using fake identities to secure loans [11]. - Key players, including bank officials and insurance executives, neglected their due diligence responsibilities, allowing fraudulent loans to be approved without proper verification [9][10]. Scale of the Fraud - The fraud involved multiple layers, with Chi Jinlong's operations leading to the misappropriation of 2.5 million yuan in the first loan and a total of 12.7 billion yuan in loans being fraudulently obtained by the team of former Century Huatong director Shao Heng [12][11]. - By the time the fraud was uncovered, only 8.3 billion yuan of the principal had been repaid, resulting in a loss of 4.2 billion yuan to financial institutions [12]. Regulatory and Compliance Failures - The case underscores significant deficiencies in the risk management practices of Huishang Bank, which faced multiple regulatory penalties for various compliance failures between 2021 and 2025, totaling over 22.79 million yuan [17][18]. - The article also highlights systemic issues within the bank's governance, including corruption among senior executives, which has led to a series of legal actions against them [19]. Judicial Outcomes - As of July 2025, Chi Jinlong faced criminal charges for loan fraud and bribery, while Shao Heng received a non-prosecution decision, raising concerns about the fairness of the judicial process [14][12]. - The case remains ongoing, with implications for the broader financial industry regarding the need for improved regulatory oversight and internal controls [5][17].

Group 1 - The core issue revolves around a fraudulent scheme involving 1.7 billion yuan in trust funds, which was exposed after six years, implicating state-owned trust companies, listed banks, and leading insurance firms as tools of the fraudsters [1][2] - The "credit insurance loan" model initiated by Huaneng Trust and Huishang Bank in June 2019 was intended to create a risk-sharing mechanism but quickly deviated from its intended purpose due to internal control failures and lack of compliance [2][6] - The fraudulent activities included fabricating loan entities, forging insurance documents, and manipulating bank account flows, resulting in a total of 12.7 billion yuan in fraudulent loans and an actual loss of 4.2 billion yuan [2][4] Group 2 - The case highlights systemic weaknesses in internal controls and compliance within financial institutions, particularly Huaneng Trust, which failed to verify the true identities of borrowers and did not conduct secondary underwriting on loan materials [6][7] - Huishang Bank has faced significant regulatory scrutiny, receiving 28 penalties totaling 22.79 million yuan from 2021 to 2024 for issues related to financing false projects and inadequate post-loan management [6][7] - The industry has seen a pattern of similar fraudulent events, indicating a trend where trust companies prioritize business innovation over thorough asset verification and risk management, which could lead to further risks if not addressed [7]

Core Viewpoint - The recent performance of the bond market shows a slight rebound, while the stock market faces some resistance, leading to a primarily fluctuating trend in investments [1] Product Overview - The product "智盈添金最低持有300天理财产品2号" from Huishang Bank has a minimum holding period of 300 days and focuses on fixed income investments [6] - As of the end of Q2 this year, the product's investment in funds reached 62.71%, which is significantly higher than typical fixed income products that primarily invest directly in bonds [4][13] Investment Strategy - The product employs a strategy that includes quantitative fund selection, with the top ten holdings consisting entirely of public funds, indicating a reliance on fund manager selection capabilities [4][13] - The product's investment strategy is categorized into three main approaches: asset allocation strategy, fund investment strategy, and bond investment strategy [17] Performance Metrics - The average yield of the "智盈添金" series products was 2.13% last year, with a net value growth rate of 1.42% in the first half of this year, annualized to approximately 2.84% [5] - The product scored 25 in yield, 92 in risk control, 11 in risk-adjusted return, and 58 in comprehensive fee rate, ranking it 128th, 238th, 189th, and 192nd respectively among 356 similar products [5] Risk and Fee Structure - The product has a risk level classified as secondary (medium-low), with a maximum drawdown since inception of 10.63% [12][18] - The new redemption fee structure introduced by the CSRC on September 5 requires a minimum redemption fee of 1.5% for holdings less than seven days, which may impact the product's fund investments [4] Comparative Analysis - The product's annualized return since inception is 4.52%, outperforming 67.13% of similar products, while its recent one-month annualized return is 2.41%, beating 40.17% of similar products [11][12] - The product's overall performance is considered average compared to peers, particularly due to the recent underperformance of some funds within its portfolio [8][17]

Core Viewpoint - Huishang Bank has shown stable performance with a steady increase in returns, achieving a year-on-year growth in both operating income and net profit as of 1H25 [1][4]. Group 1: Financial Performance - As of 1H25, Huishang Bank reported operating income of 21.157 billion yuan, a year-on-year increase of 2.2%, and a net profit attributable to shareholders of 9.109 billion yuan, up 5.5% year-on-year [1]. - The annualized ROA and ROE increased by 0.04 and 1.09 percentage points, respectively, compared to the previous year [1]. - The bank's net interest margin for 1H25 was 1.55%, a decrease of 0.16 percentage points from the previous year, while the interest spread fell by 0.26 percentage points to 1.87% [3]. Group 2: Market Position and Growth - Huishang Bank is the only city commercial bank in Anhui province, with 487 branches, achieving 87.9% coverage in the province and holding 90.3% of total assets and 86.2% of the credit scale within the province [2]. - The bank's loan portfolio reached 1.10 trillion yuan, growing 15.28% year-on-year, with corporate loans at 780.455 billion yuan (up 13.05%) and personal loans at 320.078 billion yuan (up 21.15%) [2]. - Total deposits amounted to 1.28 trillion yuan, an increase of 11.76% year-on-year, with corporate deposits at 544.810 billion yuan (up 17.05%) and personal deposits at 707.194 billion yuan (up 18.52%) [2]. Group 3: Investment and Asset Quality - Investment income for 1H25 was 4.526 billion yuan, a year-on-year increase of 12.52%, while net commission and fee income slightly decreased by 0.4% to 1.759 billion yuan [3]. - The bank's non-performing loan ratio improved to 0.98%, down 0.01 percentage points from the end of the previous year, and the provision coverage ratio increased by 3.47 percentage points to 289.94% [3]. - As of 1H25, the core tier 1 capital adequacy ratio, tier 1 capital adequacy ratio, and total capital adequacy ratio were 9.53%, 11.02%, and 13.27%, respectively, indicating a strong capital position [3]. Group 4: Future Projections - Forecasts for Huishang Bank's operating income from 2025 to 2027 are 38.044 billion yuan, 39.460 billion yuan, and 41.149 billion yuan, representing year-on-year growth of 2.47%, 3.72%, and 4.28% respectively [4]. - Projected net profit attributable to shareholders for the same period is 16.310 billion yuan, 17.173 billion yuan, and 18.195 billion yuan, with year-on-year growth rates of 5.81%, 5.29%, and 5.95% respectively [4].