Investment Rating - The report does not explicitly provide an investment rating for the banking sector Core Insights - In the first half of 2025, the banking sector saw a total net inflow of 122 billion yuan from ETFs, with significant contributions from the CSI 300 ETF (89 billion yuan) and dividend ETFs (32 billion yuan) [2] - The report highlights that while short-term impacts from tariff policies may affect exports, long-term expansionary policies aimed at stabilizing the economy are expected to benefit the banking sector [3] - Specific banks such as Ningbo Bank, Postal Savings Bank, and China Merchants Bank are recommended for their cyclical growth potential, while Shanghai Bank and Jiangsu Bank are noted for their dividend strategies [3] Summary by Sections ETF Fund Inflows - The total net inflow into the banking sector from ETFs in the first half of 2025 was 122 billion yuan, with the CSI 300 ETF being the largest contributor [2] - The banking ETF alone saw a net inflow of 35 billion yuan, while the dividend ETF contributed 52 billion yuan [1][2] Market Trends - The report indicates a slowdown in overall ETF inflows compared to the previous year, with a notable peak in April 2025 [1] - The banking sector's performance is expected to improve due to supportive policies aimed at economic recovery [3] Key Data Tracking - The average trading volume for stocks reached 14,962.78 billion yuan, reflecting an increase from the previous week [4] - The balance of margin financing and securities lending increased by 0.78% to 1.87 trillion yuan [7] Interest Rates and Debt Issuance - The issuance of interbank certificates of deposit reached 4,264.30 billion yuan, with an average interest rate of 1.61% [8] - Local government special bond issuance totaled 63.985 billion yuan, with a cumulative issuance of 22,275.22 billion yuan since the beginning of the year [8] Sector Performance - The banking sector's performance is tracked against the CSI 300 index, with fluctuations noted in the sector's growth [5] - The report includes various charts detailing the performance of individual banks and their respective contributions to ETF inflows [11][16]

1. Report Investment Rating - No investment rating for the industry is provided in the report. 2. Core Viewpoints - The report argues that China Minsheng Bank's existing non - performing assets are basically resolved, its fundamentals are improving, and the market may have overestimated its credit risk. The investment value of its Tier 2 and perpetual bonds is relatively high, with significant potential for yield decline and prominent cost - effectiveness [1][2]. 3. Summary by Directory 3.1 Equity Structure and Corporate Governance - **Stable Equity Structure and Controllable Related - Party Loan Risks**: As of Q1 2025, Minsheng Bank's total assets reached 7.78 trillion yuan, and it is one of the 20 system - important banks in China in 2023. The top shareholder is Dajia Life Insurance, and the shareholding of private enterprises is relatively dispersed. As of the end of 2024, related - party loans accounted for only 1.64% of the total loans, meeting regulatory requirements [2][6][7]. - **Reasonable Board and Management Structure**: In 2024, there were significant personnel changes in the board of directors and management. Most executives were promoted internally, and a few were from large state - owned banks. The board structure is reasonable, with diversified members and high operational independence. Private shareholders have weak influence on bank operations [14][15][16]. 3.2 Asset Scale and Structure - **Large Asset Scale and Main Investment in Loans and Bonds**: From 2020 - 2024, the average annual compound growth rate of Minsheng Bank's assets was 2.98%. As of the end of 2024, its total assets were 7.81 trillion yuan, the largest among banks in the first group of system - important banks. Loans and financial investments accounted for over 80% of total assets [19][26]. - **Steady Loan Growth and Industry Structure Optimization**: From 2017 - 2024, the average annual compound growth rate of loans was 7.04%. As of Q1 2025, loans accounted for 57.36% of total assets. The proportion of real estate loans has been decreasing, while that of infrastructure - related industries has been increasing. As of the end of 2024, the loans of the top ten borrowing customers accounted for 1.72% of the total loans, indicating a low loan concentration [28][34][41]. - **Government Bond - Based Financial Investments with Low Credit Risk**: As of the end of 2024, financial investments accounted for 30.69% of total assets, with bond investments accounting for about 89.42%. Government bonds accounted for 63.82%, and the credit risk of the investment portfolio was low [45][49]. 3.3 Non - Performing Asset Disposal and Asset Quality - **Resolution of Existing Non - Performing Assets**: From 2020 - 2022, Minsheng Bank cleared and disposed of over 300 billion yuan of non - performing and potentially risky assets. As of the end of 2024, the non - performing loan rate, non - performing loan generation rate, and migration rate of normal and special - mention loans had declined for four consecutive years [52][71]. - **Improvement in Asset Quality Indicators**: The non - performing loan generation rate decreased from 3.63% at the end of 2020 to 1.49% at the end of 2024. The non - performing loan rate at the end of 2024 was 1.47%. Although the overdue loan rate and the proportion of restructured loans increased in 2024, the overall asset quality is improving [71][72][75]. 3.4 Liability Structure and Operating Performance - **Optimized Liability Structure and Good Liquidity Indicators**: From 2022 - 2024, the proportion of deposits in liabilities was about 60%. The reliance on inter - bank liabilities decreased, while the scale of bonds payable increased. As of the end of 2024, liquidity regulatory indicators met regulatory requirements, and capital adequacy indicators remained stable [80][85][90]. - **Potential Turnaround in Operating Performance**: From 2020 - 2024, operating income and net profit declined. However, in Q1 2025, the revenue growth rate was high. The net interest margin in 2024 was at a low level in the industry, but with the downward adjustment of deposit rates, the net interest margin is expected to stabilize [98][103][114]. 3.5 Investment Value of Minsheng Bank's Capital Bonds - **Fundamental Improvement and Potential Performance Growth**: Existing non - performing assets are basically resolved, and based on assumptions such as loan industry structure optimization and improved asset quality, Minsheng Bank's performance is expected to improve slightly in the next three years [120][122]. - **Low Credit Risk of Capital Bonds**: Minsheng Bank's existing capital tools amount to 175 billion yuan, with normal interest payments and all previous capital tools actively redeemed at maturity. The yields of its Tier 2 and perpetual bonds are higher than the industry average, but the market may have overestimated its credit risk. The bonds have low credit risk due to factors such as high trigger thresholds for write - down or conversion and the bank's safety - rated central bank financial institution rating [123][124][128].

Core Insights - The event titled "'Chain' Connecting Supply and Demand 'Benefiting' Enterprise Collaboration" was organized by the Yinchuan Municipal Industry and Information Technology Bureau to address financing challenges faced by industrial enterprises [1][3] - A total of 15 financial institutions and over 20 industrial enterprises participated, utilizing a model of "government platform, enterprise performance" to facilitate effective communication and collaboration [1][3] Group 1 - The event provided a platform for banks and enterprises to understand each other's needs, showcasing the enterprises' production operations, technological advantages, and unique products through "8-minute precise roadshows" [3] - Financial institutions, including Ningxia Bank and Minsheng Bank, presented specialized financial products and services, such as "Ningke Loan" and "Digital Transformation Loan," which received positive feedback from enterprises [3] - A tracking mechanism called "three ones" was established, including an enterprise demand list, a bank service plan, and a follow-up supervision system to ensure the outcomes of the financing matches [3][4] Group 2 - The Yinchuan Municipal Industry and Information Technology Bureau plans to enhance the regularized interaction mechanism between government, banks, and enterprises, aiming to create a comprehensive service system that combines financing and intelligence [4] - The initiative seeks to channel financial resources towards high-quality industrial projects, transforming policy benefits into new momentum for the high-quality development of industrial enterprises [4]

Core Viewpoint - The importance of deposit insurance systems in enhancing public confidence in the banking sector and safeguarding depositors' rights is emphasized, with Minsheng Bank's Jinan branch actively promoting awareness of deposit insurance [1][2] Group 1: Promotion Activities - Minsheng Bank's Jinan branch has transformed its business outlets into primary venues for deposit insurance promotion, creating a strong promotional atmosphere with visible banners and informative displays [1] - The branch utilizes digital screens to play videos explaining deposit insurance policies, while printed materials are readily available for customers to learn about key aspects such as definitions, coverage, and compensation limits [1] - Bank staff actively engage with customers, explaining deposit insurance in simple terms and using real-life examples to alleviate concerns [1] Group 2: Community Engagement - The bank has expanded its outreach by conducting promotional activities in communities, shopping areas, and businesses, addressing common questions about deposit insurance [2] - Special lectures are held in community centers, focusing on the importance of deposit insurance, particularly for elderly residents, using relatable language and scenarios [2] - In commercial areas, bank staff educate shop owners about the role of deposit insurance in protecting their business funds, thereby fostering trust in the banking system [2] - Financial knowledge training sessions are organized for corporate employees, reassuring them that their deposits remain safe even if the bank faces risks [2]

Core Viewpoint - The Minsheng Bank Jinan Branch is actively promoting anti-counterfeit currency awareness to enhance public recognition of counterfeit money and maintain the normal circulation order of currency [1][2] Group 1: In-Branch Initiatives - The bank has established immersive anti-counterfeit learning environments at its branches, featuring prominent displays of the fifth set of Renminbi's anti-counterfeit features such as color-shifting numbers, watermarks, and security threads [1] - Digital screens in the lobby continuously play videos demonstrating counterfeit recognition techniques, engaging customers [1] - Informative brochures detailing common types of counterfeit money, collection processes, and legal responsibilities are available in service areas [1] - Bank tellers actively remind customers to pay attention to anti-counterfeit features during cash transactions, integrating anti-counterfeit education into service interactions [1] Group 2: Community Outreach - The bank is expanding its outreach by conducting diverse anti-counterfeit currency campaigns in communities, shopping areas, and schools [2] - In community settings, staff collaborate with neighborhood committees to host "Anti-Counterfeit Currency Knowledge in Communities" events, sharing practical recognition methods through case studies and live demonstrations [2] - In shopping areas, staff provide one-on-one education to merchants about the dangers of counterfeit money and proper use of currency verification devices [2] - In schools, staff conduct engaging lectures using animated videos and interactive quizzes to teach students about the dangers of counterfeit money and recognition methods, encouraging them to share knowledge with their families [2]

Core Viewpoint - The banking sector in A-shares has experienced significant growth, with a year-to-date increase exceeding 20%, outperforming major market indices like the CSI 300 and Shanghai Composite Index [3][4]. Group 1: Reasons for the Surge in Banking Stocks - The improvement in asset quality and stable profitability of banks has been highlighted as a key factor for the surge, with core earnings and net interest income showing signs of recovery [4][6]. - The influx of insurance capital into banking stocks is considered a major driver, as the decline in 10-year government bond yields has created an asset shortage, making bank stocks attractive due to their stability and dividend characteristics [4][5]. - The increase in public fund allocation to banking stocks, with the proportion rising from 3.72% to 4.00%, indicates a renewed interest in the investment value of banking stocks [5][6]. Group 2: Valuation and Performance Metrics - The banking sector's low valuation is also a contributing factor, with a static price-to-book (PB) ratio of 0.67, suggesting a significant safety margin compared to other industries [6][11]. - The average return of the top 20 banking stocks has reached 27.62%, with six stocks showing gains over 30% year-to-date, indicating strong performance across the sector [9][12]. - The dividend yield for several banks, such as Chongqing Bank and Changsha Bank, exceeds 6%, while some banks have yields below 3%, raising concerns about the perceived safety margin [10][11]. Group 3: Performance of Banking-Themed Funds - The banking-themed funds have also performed well, with the top 20 funds showing a minimum return of 19.08% year-to-date, and seven funds exceeding 20% [13][14]. - Notably, two funds managed by Liu Chongjie have achieved returns of 26.63% and 23.30%, benefiting from high dividend themes and the unique valuation dynamics of Hong Kong bank stocks [13][15].

Core Viewpoint - The "零钱包" service by Minsheng Bank aims to address the public's need for small change in daily transactions, providing a convenient solution for both merchants and individuals [1][2] Group 1: Service Features - The "零钱包" is designed to meet the cash needs of the public, offering pre-packaged cash in various denominations, including standardized options of 100 yuan, 200 yuan, and 300 yuan [1] - Each standardized "零钱包" contains a scientifically reasonable combination of denominations, such as 10 ten-yuan notes, 10 five-yuan notes, and 50 one-yuan coins in the 100 yuan package, facilitating change for merchants and small cash reserves for individuals [1] Group 2: Accessibility and Promotion - Minsheng Bank has established a regular exchange mechanism for the "零钱包," allowing customers to quickly process exchanges through a green channel in the bank [2] - Customers with urgent needs can make advance reservations, ensuring that the "零钱包" is prepared for quick pickup, significantly reducing waiting times [2] - The bank staff actively promotes the "零钱包" service in communities, markets, and business districts, while also educating the public on counterfeit currency detection [2] Group 3: Future Outlook - The "零钱包" service is expected to improve and expand, benefiting more people and providing a more personalized financial service experience [2]

Core Viewpoint - The A-share banking sector is experiencing a "mini bull market," with major banks reaching historical highs due to enhanced economic recovery expectations, attractive dividend yields in a low-interest environment, and sustained inflow of long-term funds [1][3][4]. Group 1: Market Performance - As of July 10, 2025, 34 out of 42 A-share listed banks saw their stock prices rise, with Minsheng Bank leading at a 5.31% increase, and Guiyang Bank at 3.24% [3]. - The banking sector has shown a robust performance with an overall increase of 9.66% over the past month [3][4]. Group 2: Fundamental Drivers - The strong performance of bank stocks is supported by improved profitability and asset quality, driven by asymmetric interest rate cuts that lower funding costs and enhance non-interest income [4]. - The recovery in consumer spending has positively impacted card transaction fees, while active capital markets have boosted income from wealth management services [4]. Group 3: Long-term Fund Inflows - Significant inflows from domestic insurance funds and social security funds have increased their holdings in bank stocks, providing solid financial support for price increases [3][4]. - The current price-to-book ratio of the banking sector is 0.72, below the global average, and the dividend yield exceeds that of 10-year government bonds, making it an attractive investment option [4]. Group 4: Market Sentiment and Future Outlook - While some analysts are optimistic about the continuation of the upward trend due to high dividend yields and institutional support, others express caution regarding the rising valuations and potential narrowing of net interest margins [5]. - The banking sector is viewed as a defensive asset amid global economic uncertainties, with expectations of continued fund inflows and a potential "slow bull" market in the medium to long term [6].

Group 1 - The conference "With the People, Create Win-Win" was successfully held, focusing on the transformation and development strategies of private enterprises in Hebei Province, with around 300 quality private enterprise representatives attending [2] - Experts and leaders discussed strategies for private enterprises to seize opportunities and tackle challenges in a complex economic environment, aiming for sustainable development [2][3] - The "Private Economy Promotion Law" was highlighted as a significant legislative measure to eliminate barriers and challenges faced by private enterprises, providing strong momentum for high-quality economic development in China [2][3] Group 2 - The conference provided insights into the motivations and impacts of the US tariff war, advising foreign trade-oriented enterprises to enhance risk awareness and adapt to changing economic conditions [3] - The chief economist of China Minsheng Bank emphasized the importance of aligning with national development strategies and focusing on core competitiveness for private enterprises to achieve high-quality development [3] - The successful hosting of the conference is expected to provide intellectual support and motivation for the high-quality development of private enterprises in Hebei Province and serve as a valuable experience for the national private economy [4]

Core Viewpoint - Minsheng Bank Ningbo Branch is actively enhancing the professional skills and practical abilities of cash handling personnel to combat counterfeiting through a combination of online and offline training programs [1][2][3]. Group 1: Online Training - The online training session titled "Building a Strong Anti-Counterfeiting Line and Purifying Currency Circulation" was organized to align with the municipal anti-counterfeiting currency work [2]. - The training focused on the latest counterfeit currency characteristics, identification techniques, and industry regulatory dynamics, covering key points for RMB and five major foreign currencies [2]. - Core policies and operational requirements such as counterfeit currency collection standards and damaged currency exchange standards were included to establish a solid theoretical foundation for subsequent offline practical training [2]. Group 2: Offline Training - The offline practical training was organized with the participation of experienced experts, emphasizing real-world application [3]. - The training deepened understanding of regulations and risk awareness, focusing on anti-counterfeiting laws and standards for non-circulating currency, using real case studies to analyze risk points [3]. - Key skills for quickly identifying high-circulation currencies like RMB and USD were enhanced, particularly in recognizing complex counterfeit methods such as "genuine patchwork" notes [3]. - The training included a display of various counterfeit currency samples for hands-on observation, significantly improving participants' perceptual understanding [3]. - Updates to the latest operational guidelines for counterfeit currency collection were thoroughly explained, standardizing the entire process for handling damaged currency [3]. - Practical assessments in simulated business scenarios were conducted to ensure effective learning and application of skills [3]. Group 3: Future Plans - Minsheng Bank Ningbo Branch plans to continue enhancing employees' anti-counterfeiting capabilities, aiming to create a robust defense against counterfeit currency [3]. - The initiative is intended to safeguard customer funds and maintain regional financial stability [3].