Core Viewpoint - Hong Kong banking stocks experienced a collective rise, with significant gains observed in several major banks, indicating a positive market sentiment towards the banking sector [1] Group 1: Stock Performance - Huishang Bank increased by 4.5%, while China Construction Bank rose over 3%. Other banks such as Industrial and Commercial Bank of China, Bank of China, and CITIC Bank saw increases of over 2% [1] - The latest stock prices and percentage changes for various banks are as follows: - Huishang Bank: 3.490, +4.49% - China Construction Bank: 7.940, +3.12% - Industrial and Commercial Bank of China: 6.160, +2.33% - Bank of China: 4.500, +2.27% - Agricultural Bank of China: 6.050, +2.20% - CITIC Bank: 7.360, +2.17% [2] Group 2: Financial Performance Insights - According to a report from Xiangcai Securities, the third-quarter reports of listed banks for 2025 showed relatively stable revenue and an increase in net profit growth [1] - All types of banks reported an increase in net interest income growth compared to the mid-term, with a marginal stabilization in interest margins, indicating a solid foundation for core business revenue growth [1] - Overall, the performance of banks in the third-quarter reports met expectations, suggesting a favorable outlook for the sector [1] Group 3: Investment Recommendations - The report suggests that with a rebalancing of market investment styles, banking stocks are attracting allocation funds due to their stable high dividends. The recommendation is to focus on the absolute return investment value of bank stocks [1] - Specific recommendations include state-owned banks like Industrial and Commercial Bank of China and Bank of China for their stable high dividend value, as well as opportunities for valuation recovery in joint-stock and regional banks such as CITIC Bank, Jiangsu Bank, Chengdu Bank, and others [1] - The industry maintains an "overweight" rating, indicating a positive investment outlook [1]

Core Viewpoint - Hong Kong banking stocks experienced a collective rise, with notable increases in share prices for various banks, indicating a positive market sentiment towards the banking sector [1] Summary by Category Stock Performance - Huishang Bank rose by 4.5%, China Construction Bank increased by over 3%, and several other banks including Industrial and Commercial Bank of China, Bank of China, and Agricultural Bank of China saw gains exceeding 2% [2] - The overall performance of banking stocks reflects a shift in market investment style towards stable, high-dividend yielding stocks [1] Financial Outlook - According to a report by Xiangcai Securities, the revenue of listed banks is expected to remain stable, with an increase in net profit growth anticipated for the third quarter of 2025 [1] - Various types of banks have shown an improvement in net interest income growth compared to the mid-term, with many banks experiencing a marginal stabilization in interest margins [1] Investment Recommendations - The report suggests focusing on state-owned banks for their stable high-dividend investment value, recommending Industrial and Commercial Bank of China and Bank of China [1] - Additionally, there are opportunities for valuation recovery among joint-stock banks and regional banks, with recommendations for banks such as CITIC Bank, Jiangsu Bank, Chengdu Bank, and others [1]

Group 1 - The core viewpoint indicates that the banking sector is showing signs of stabilization with improved net profit growth and steady revenue in the third quarter of 2025 [1][2] - Major banks such as Huishang Bank, China Construction Bank, Bank of China, and Industrial and Commercial Bank of China have seen stock price increases, reflecting positive market sentiment [1] - The report from Xiangcai Securities highlights that the decline in deposit costs and narrowing interest margin, along with stable growth in intermediary business income, contribute to the banks' performance stabilization [1] Group 2 - Citic Securities reports that the operating landscape for listed banks remains stable, with revenue and net profit attributable to shareholders growing by 0.9% and 1.5% year-on-year, respectively [2] - The asset quality of banks is stable, and the expectation is for continued improvement in revenue and profit growth for the full year [2] - Despite recent fluctuations in bank stock prices, Citic Securities believes that the undervalued nature of these stocks presents significant value opportunities, especially as long-term funds begin to allocate towards bank stocks [2]

Core Insights - Huishang Bank (03698) experienced a stock price increase of over 4%, trading at 3.47 HKD with a transaction volume of 12.12 million HKD as of the report [1] Financial Performance - For the first three quarters of 2025, Huishang Bank reported a net profit of 14.149 billion RMB [1] - As of September 30, 2025, the bank's capital adequacy ratio stood at 12.75%, with a Tier 1 capital ratio of 11.10% and a core Tier 1 capital ratio of 9.62%, meeting regulatory requirements in China [1] Capital Structure - The core Tier 1 capital amounted to 132.112 billion RMB, which includes: - Paid-in capital: 13.890 billion RMB - Capital reserves and other comprehensive income: 16.267 billion RMB - Surplus reserves and general risk provisions: 45.448 billion RMB - Retained earnings: 69.580 billion RMB - Minority interest: 2.517 billion RMB - Regulatory deductions for core Tier 1 capital: 15.589 billion RMB [1] - The total Tier 1 capital net amount was 152.427 billion RMB, and the total capital net amount was 175.107 billion RMB [1] - The total risk-weighted assets amounted to 1,373.381 billion RMB as of September 30, 2025 [1]

Core Viewpoint - Huishang Bank (03698) reported a net profit of RMB 14.149 billion for the first three quarters of 2025, indicating a strong financial performance [1] Financial Performance - The bank's capital adequacy ratio stood at 12.75% as of September 30, 2025, with a Tier 1 capital adequacy ratio of 11.10% and a core Tier 1 capital adequacy ratio of 9.62%, meeting regulatory requirements in China [1] - The core Tier 1 capital net amount was RMB 132.112 billion, which includes paid-in capital of RMB 13.890 billion, capital reserves and other comprehensive income of RMB 16.267 billion, surplus reserves and general risk provisions of RMB 45.448 billion, undistributed profits of RMB 69.580 billion, and minority shareholders' capital of RMB 2.517 billion, with regulatory deductions amounting to RMB 15.589 billion [1] - The Tier 1 capital net amount was RMB 152.427 billion, and the total capital net amount was RMB 175.107 billion as of the same date [1] - The total risk-weighted assets amounted to RMB 1,373.381 billion [1]

Core Insights - Huishang Bank (03698.HK) reported a net profit of RMB 14.149 billion for the nine months ending September 30, 2025 [1] - As of the end of September 2025, the bank's capital adequacy ratio stood at 12.75%, with a Tier 1 capital ratio of 11.10% and a core Tier 1 capital ratio of 9.62%, meeting regulatory requirements in China [1] Financial Metrics - The core Tier 1 capital net amount is RMB 132.112 billion, which includes paid-in capital of RMB 13.890 billion, capital reserves and other comprehensive income of RMB 16.267 billion, surplus reserves and general risk provisions of RMB 45.448 billion, retained earnings of RMB 69.580 billion, and minority interest capital of RMB 2.517 billion [1] - The Tier 1 capital net amount is RMB 152.427 billion, while the total capital net amount is RMB 175.107 billion [1] - The total risk-weighted assets amounted to RMB 1,373.381 billion as of September 30, 2025 [1] Capital Instruments - As of September 30, 2025, the bank had a balance of RMB 6 billion in Tier 2 capital bonds and RMB 20 billion in perpetual capital bonds [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致之任何損失承擔任何責任。 Huishang Bank Corporation Limited* 徽商銀行股份有限公司 * 本行根據中國企業會計準則編製的財務資料概要載列如下： 於2025年9月30日 人民幣（億元） （未經審計） （於中華人民共和國註冊成立的股份有限公司） （股份代號：3698） 公告 截至2025年9月30日止九個月之財務資料概要 本公告乃由徽商銀行股份有限公司（「本行」）根據《證券及期貨條例》（香港法例第 571章）第XIVA部項下之內幕消息條文及香港聯合交易所有限公司證券上市規則 第13.09(2)(a)條及第13.10B條作出。 根據中華人民共和國（「中國」）相關法律及法規，因本行發行二級資本債 券及無固定期限資本債券，本行截至 2025 年 9 月 3 0 日止九個月未經審計的 財務資料概要及資本充足率情況（「資料」）已刊載於中央國債登記結算有 限責任公司(http://www.chinabond.co ...

Core Viewpoint - Huishang Bank has been penalized for compliance violations, revealing significant internal management issues as it prepares for its A-share listing, which has faced delays due to ongoing governance and legal challenges [1][20]. Regulatory Penalties - Huishang Bank was fined 2.4 million yuan for imprudent loan product management and inadequate due diligence, with key personnel facing bans from the banking industry [4][2]. - The bank's Hefei Baohe Industrial Park branch was fined 300,000 yuan for insufficient pre-loan investigations, and a senior manager received a lifetime ban from the banking sector [4][2]. - In 2024, Huishang Bank faced a total of 41 penalties amounting to nearly 25 million yuan, making it the city commercial bank with the highest regulatory fines [7]. Internal Management Issues - The bank has a history of compliance failures, with multiple senior executives facing legal issues, including former chairman Li Hongming, who was sentenced to 14 years in prison for corruption [7][8]. - Three out of five past chairmen have been investigated for serious violations, indicating systemic governance problems within the bank [8]. Financial Performance - Huishang Bank's revenue growth has significantly slowed, with 2021-2023 revenues of 35.514 billion, 36.230 billion, and 36.365 billion yuan, reflecting a decline in growth rates [10]. - The bank's net profit for 2024 was 15.917 billion yuan, with a growth rate of only 6.18%, further indicating a downward trend in profitability [12]. - For the first half of 2025, the bank reported a revenue of 21.157 billion yuan, a year-on-year increase of 2.25%, but its net interest income fell by 1.06% [14]. Asset Quality Concerns - As of June 2025, Huishang Bank's non-performing loans totaled 10.765 billion yuan, with a non-performing loan ratio of 0.98%, indicating ongoing challenges in asset quality management [16]. - The bank's overdue loans increased by 5.43% to 13.346 billion yuan, raising concerns about future asset quality deterioration [18]. A-share Listing Challenges - Huishang Bank's A-share listing has been stalled for over six years due to governance issues, including overdue board member terms and unresolved shareholder disputes [20][22]. - The ongoing legal disputes between major shareholders have further complicated the bank's ability to proceed with its A-share listing plans [22][23].

Core Viewpoint - Huishang Bank has faced multiple regulatory penalties due to inadequate risk management and compliance, highlighting the need for digital risk control and enhanced compliance awareness to address its operational challenges [2][4][6]. Regulatory Penalties - Huishang Bank received three penalties from the Anhui Financial Supervision Administration for improper loan product management and inadequate loan checks, totaling 2.4 million yuan, with one individual banned from the banking industry for ten years [3]. - Previous penalties include a fine of 410,000 yuan for false credit data and a fine of 350,000 yuan for inadequate pre-loan investigations, indicating a pattern of regulatory issues related to loan management [3][4]. Internal Management Issues - The bank's internal management reveals two core problems: ineffective risk control systems and insufficient supervision of loan personnel, leading to repeated failures in loan management processes [4][5]. - Despite mentioning "risk control" in annual reports, the bank's frequent credit management issues contrast sharply with its stated commitment to risk management [4]. Loan Growth and Risks - As of June 2025, Huishang Bank's total customer loans and advances reached 1,100.53 billion yuan, an increase of 98.37 billion yuan or 9.82% year-on-year, but this growth raises concerns about a "scale-first" approach that may lead to future risks [4][5]. - The bank's non-performing loan balance increased to 10.765 billion yuan, with a non-performing loan rate of 0.98%, indicating potential underlying issues despite a slight decrease in the non-performing loan ratio [4]. Industry Context - The trend of increasing regulatory penalties for credit violations is not unique to Huishang Bank, as many financial institutions face similar scrutiny for inadequate loan management practices [6]. - The traditional model of linking loan issuance to employee compensation is becoming unsustainable, necessitating a shift towards more refined risk management practices [7][8]. Recommendations for Improvement - Experts suggest that the key to overcoming these challenges lies in the deep integration of digital risk control, utilizing technologies like big data and AI to enhance risk management efficiency [8]. - Regulatory measures are being strengthened, with new guidelines aimed at improving the precision and standardization of credit management across the banking sector [8].

Core Insights - The article emphasizes the abundance of bank wealth management products with similar names and vague characteristics, urging investors to carefully select and differentiate among them [1] - The South Finance Wealth Management team aims to reduce investors' selection costs by focusing weekly on the performance of wealth management products available through various distribution channels [1] Summary by Category Performance Rankings - The current focus is on the performance of public offering products with a minimum holding period in RMB, categorized by holding periods of 7 days, 14 days, 30 days, and 60 days, with annualized returns as the performance metric [1] - The ranking includes 28 distribution institutions such as Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, and others [1] Product Availability - The list of products is based on their "on-sale" status, which is determined by their investment cycle; however, actual availability may vary due to factors like sold-out quotas or differences in product listings for different customers [1] - Investors are advised to refer to the actual display on the distribution bank's app for the most accurate information [1] Weekly Updates - The article provides a weekly update on the performance of wealth management products, with specific attention to the lowest holding period products for the week of October 27 to November 2 [5][8][11]