Group 1 - The banking industry in 2026 will face a mixed external environment with strong macroeconomic resilience but insufficient effective demand, leading to continued moderate monetary policy and challenges in asset allocation due to a low interest rate environment [4][10] - The "14th Five-Year Plan" emphasizes the construction of a financial powerhouse, urging banks to leverage their resource endowments and deepen their strategic initiatives over the next five years [4][10][22] - The overall financial performance of listed banks is expected to improve in 2026, driven by the recovery of net interest income and non-interest income, with a projected net profit growth of 2.4% year-on-year [4][27] Group 2 - The net interest margin is expected to narrow by 6 basis points in 2026, with net interest income growth projected to rise to 4% compared to 0.3% in 2025 [4][27] - Non-interest income is anticipated to continue improving due to the recovery of wealth management opportunities and the fading impact of fee reductions from previous years [4][27] - The overall asset quality of the banking sector is expected to remain stable, with a focus on monitoring risks in the retail sector [4][27] Group 3 - The investment strategy emphasizes high dividend yields as a protective measure, with the banking sector's average dividend yield at 3.94%, providing a significant premium over ten-year government bonds [4][27] - Specific banks such as Chengdu Bank, Jiangsu Bank, and Shanghai Bank are highlighted for their strong regional advantages and potential for continued dividend growth [4][27][34] - The report suggests that the active capital market will provide a potential boost to quality retail banks, enhancing their recovery prospects [4][27]

Economic News - In November 2025, the national industrial producer price index decreased by 2.2% year-on-year, while the purchasing price index fell by 2.5% year-on-year. The average for January to November shows a decline of 2.7% for the producer price index and 3.1% for the purchasing price index compared to the same period last year [1] - The consumer price index for November 2025 increased by 0.7% year-on-year, with an average for January to November remaining flat compared to the previous year [1] - The United Nations reported that global trade is expected to exceed $35 trillion for the first time in 2025, with a projected growth of approximately 7% compared to last year [1] - The International Monetary Fund (IMF) forecasts China's economic growth rate to reach 5% in 2025, an increase of 0.2 percentage points from previous estimates [1] - The Ministry of Industry and Information Technology has revised the management measures for public service platforms in industrial technology, focusing on key industries such as new energy, artificial intelligence, and biotechnology [1] Company News - Haiguang Information has terminated its plan to merge with Zhongke Shuguang through a share exchange [4] - China Life Insurance reported total premiums exceeding 700 billion yuan as of November 30, 2025 [4] - SIRUI announced the termination of its plan to acquire shares of Aola and will resume trading on December 10, 2025 [4] - Alibaba's Tongyi Qianwen has launched Qwen Code v0.3.0, enhancing its capabilities for developers [4] - Xiamen Airport is planning to acquire 100% equity of its controlling shareholder's subsidiary, Zhaoxiang Technology, using its own funds [4] Non-Bank Financial Sector - The recent adjustment of risk factors for insurance companies aims to enhance their long-term investment management capabilities and support the real economy [5][6] - Specific adjustments include lowering risk factors for certain stock indices and export credit insurance, which is expected to stabilize the capital market and improve the efficiency of insurance fund utilization [7][8] - The regulatory changes are anticipated to benefit major industry players and promote a balanced and healthy development of the equity market [9][10]

Group 1 - Jiangsu Bank, as a nationally significant bank, has launched promotional measures for the "Double Twelve" shopping festival, focusing on innovative approaches, strong investments, and the integration of scenarios, resources, and policies to boost consumption [1][9] - The "Su New Consumption·Warm Winter Shopping Season" and "Double Twelve Shopping Carnival" were officially launched on December 5 at the Suzhou International Expo Center [3] - The event featured a booth by Jiangsu Bank that creatively combined financial characteristics with local culture, generating strong interest among attendees [4] Group 2 - Jiangsu Bank provided 5,000 consumption discount vouchers for use at participating merchants, along with 2,000 digital RMB red envelopes available through a knowledge quiz [6][4] - Exclusive products such as wallet-shaped IP items were introduced, symbolizing prosperity and financial well-being for customers [7] - A promotional activity allowed customers to enjoy coffee from a smart coffee machine for just 0.01 yuan, highlighting the bank's commitment to enhancing consumer experiences [9] Group 3 - Jiangsu Bank's Suzhou branch emphasized the need to meet the upgrading demands of consumer spending by integrating finance with local culture and tourism, creating a comprehensive financial service system [11] - The bank aims to empower consumer spending through tailored credit, payment discounts, and other diverse measures, contributing to local high-quality development [11]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The report highlights the adjustment of the interest rate shock scenario by the Basel Committee (BCBS), reducing the parallel upward shift from 250 basis points (BP) to 225 BP, which is expected to improve the ΔEVE (Economic Value of Equity) to Tier 1 Capital ratio for major banks [4][5] - It is estimated that this adjustment could release approximately CNY 1 trillion in capacity for 30-year local government bonds and CNY 1.5 trillion for 15-year bonds [6][8] - The report anticipates that the regulatory requirements for interest rate risk indicators may be relaxed in 2026, potentially alleviating the pressure on banks [7] Summary by Sections Interest Rate Shock Adjustment - The BCBS has revised the interest rate shock scenario, reducing the parallel upward shift from 250 BP to 225 BP, which is expected to enhance the ΔEVE/Tier 1 Capital ratio by 0.92% to 1.57% for major banks [4][12] - Major banks such as ICBC, CCB, ABC, and BOC are projected to see improvements in their ΔEVE ratios, with specific improvements of 1.13%, 1.36%, 1.57%, and 0.92% respectively [5][12] Capacity Release for Local Government Bonds - The adjustment in interest rate shock is expected to release approximately CNY 870 billion for 30-year local government bonds and CNY 1.16 trillion for 15-year bonds [5][14] - If the Ministry of Finance injects capital into ICBC and ABC in 2026, it could further improve their ΔEVE ratios and release additional capacity for local government bonds [6][15] Regulatory Environment - The report suggests that regulatory constraints on banks may be relaxed, with a potential reduction in the required shock levels and a possible easing of the upper limit on risk indicators [7] - The report notes that major banks sold approximately CNY 740 billion in 7-10 year bonds and CNY 850 billion in 20-30 year bonds from January to November 2025, indicating a shift in their bond portfolio strategy [16] Investment Recommendations - The report recommends a bottom-up approach focusing on large state-owned banks, with specific beneficiaries identified as Agricultural Bank of China and Industrial and Commercial Bank of China [8] - Core investments are suggested in leading comprehensive banks, with China Merchants Bank and Industrial Bank highlighted as key beneficiaries [8]

Core Insights - The awards for financial bond underwriting and market-making have been announced, recognizing various banks and securities firms for their outstanding performance in the industry [1][2][3][4][5][6][7] Group 1: Outstanding Underwriters - The title of "Outstanding Underwriter" was awarded to several banks, including CITIC Bank, Shanghai Pudong Development Bank, and Industrial and Commercial Bank of China [1][2] - A total of 10 banks were recognized as "Excellent Underwriters," highlighting their contributions to the financial bond market [1] Group 2: Excellent Market Makers - The "Excellent Market Maker" category included firms such as Huatai Securities and CITIC Securities, showcasing their role in enhancing market liquidity [2][4] - A diverse range of banks, including Ping An Bank and Industrial Bank, were acknowledged for their market-making capabilities [2][4] Group 3: Special Awards - Special awards were given for various categories, including "Debt Sea Rising Award" and "Green Low Carbon Award," recognizing banks like Agricultural Bank of China and Postal Savings Bank of China for their innovative approaches [3] - The "Technology Innovation Award" was awarded to banks that demonstrated significant advancements in financial technology [3] Group 4: Individual Recognitions - Individual awards were presented to key personnel from various banks, such as CITIC Bank's Sun Wei and China Everbright Bank's Liu Yan, acknowledging their leadership in driving financial bond initiatives [4][5] - The "Outstanding Underwriting Supervisor" category highlighted individuals from major banks, emphasizing the importance of leadership in underwriting processes [5]

Core Insights - Addressing climate change and promoting green and sustainable development are key societal concerns, with a focus on ecological civilization and green low-carbon development emphasized in national meetings [1] - Jiangsu Bank positions green finance as a core strategy for transformation and development, aiming to build an influential green finance brand [1] - The bank's Beijing branch actively engages in green finance, focusing on energy low-carbon transition, environmental protection, and urban-rural green development through product innovation and service upgrades [1] Group 1: Green Financial Products - The "Green Factory Loan" product allows companies to convert their green performance into lower financing costs, linking loan rates to ESG evaluations [3][4] - Jiangsu Bank's Beijing branch has provided over 1.3 billion yuan in credit support to more than 100 suppliers through its "Green + Supply Chain" financing model, which integrates ESG performance into financing costs [5][6] - The bank has developed customized financial solutions for various industries, including "Photovoltaic Loans" and "Soil Restoration Loans," to support specific green development needs [8] Group 2: Financial Impact and Achievements - As of September 2025, the green credit balance of Jiangsu Bank's Beijing branch reached 16.172 billion yuan, a 40.92% increase from the beginning of the year, serving over 300 green industry clients [9] - The bank has been recognized as a partner in green finance services in Chaoyang District and is the only financial institution to host the district's Energy Conservation Week [9] - Jiangsu Bank aims to guide more resources into the green low-carbon sector, contributing to high-quality development and the achievement of carbon neutrality goals [9]

Group 1 - The event is the first nationwide competition specifically designed for running groups, featuring over 2,000 participants competing in a 10-kilometer team race, showcasing teamwork and sportsmanship [1] - The innovative race format replaces traditional individual competition with a team-based scoring system, emphasizing both individual speed and team cohesion [1] - The event included comprehensive safety measures, such as medical support and hydration stations, ensuring a secure running experience for all participants [1] Group 2 - Jiangsu Bank, as the title sponsor, emphasizes its commitment to social responsibility and supports the national strategy of "National Fitness," aligning with the growing public interest in sports and health [2] - The collaboration with the Jiangsu Provincial Athletics Association represents a deeper connection to community values, enhancing the overall experience for participants through innovative services like local material collection points [2] - Jiangsu Bank aims to promote sustainable development in the "Finance + Sports" model, contributing to economic recovery and encouraging sports consumption [2] Group 3 - The event serves as a platform for cultural exchange in sports, transforming individual fitness habits into a community trend, and Jiangsu Bank continues to support the high-quality development of sports in Jiangsu [3] - The bank's ongoing efforts in the "Sports + Finance" ecosystem aim to enhance the quality of services and support for the local sports industry [3]

长江证券研报指出，江苏银行三季度以来股价调整充分，目前2025年预期PB 估值0.74x，股息率 5.31%。预计未来战略机制和业绩增速保持稳定，当前配置价值在头部城商行中吸引力突出。按区间交 易均价测算，三季度主动基金减仓金额接近44亿元，仅低于招商银行，银行股重仓排名也从二季度末的 第二位降至第五位。但市场风格波动从中长期角度并不影响银行股的重估方向，筹码结构优化、估值调 整充分后将吸引配置力量持续加仓。预计江苏银行后续将迎来红利价值重估，长期重点推荐，维持"买 入"评级。 ...

Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company has maintained strategic stability since establishing its "smart, characteristic, international, and comprehensive" strategy in 2014, emphasizing a stable operational approach in 2024 that aligns with long-term capital preferences in the current market environment [2][12] - The company is expected to continue its stable performance with a focus on capital balance, benefiting from its geographical advantages and the strong growth of investment and financing in Jiangsu province [2][12] - The company's stock price has adjusted significantly since the third quarter, with a projected PB ratio of 0.74x for 2025 and a dividend yield of 5.31%, making it an attractive option among leading city commercial banks [4][6] Summary by Relevant Sections Company Overview - Jiangsu Bank is the largest city commercial bank by market capitalization and is currently undervalued, with a 2025 projected PB ratio of 0.74x and a ROE exceeding 13% [6] - The bank's dividend yield is projected to reach 5.31% in 2025, appealing to long-term capital investors [6] Financial Performance - The bank's loan growth is expected to remain stable, with a significant increase of 17.9% in loans by the end of Q3 2025, and an anticipated total loan increase of approximately 400 billion yuan for the year [12][36] - The bank's net interest margin is projected to stabilize, with a deposit cost of 1.78% in the first half of 2025, allowing for continued high growth in net interest income [12][36] - The asset quality remains stable, with a low proportion of personal operating loans and a projected net generation rate of non-performing loans of 1.10% for the first half of 2025, down 31 basis points from 2024 [12][36] Market Position - The company has seen a significant reduction in active fund holdings, with the proportion of active funds holding Jiangsu Bank shares dropping to 0.12% by the end of Q3, indicating a potential for reallocation of capital towards the bank [6][12] - The bank's capital adequacy ratio is expected to remain above 8.6% by the end of 2025, supporting its asset expansion [12][36]

Core Viewpoint - Jiangsu Bank successfully hosted the "Suyin Cross-border: Set Sail" event to support Chinese enterprises going global, focusing on the Shanghai Free Trade Zone and Central Asia as key areas for expansion [1][3]. Group 1: Event Overview - The event gathered leaders from Jiangsu Provincial Department of Commerce, Shanghai Pudong New Area Business Committee, and industry experts, along with over a hundred representatives from Chinese enterprises [1]. - The Shanghai Free Trade Zone is highlighted as a crucial hub for linking global resources and expanding international markets, while Central Asia is identified as a potential blue ocean for economic cooperation [3]. Group 2: Strategic Insights - Jiangsu Bank's President Yuan Jun emphasized the bank's commitment to accompany Chinese enterprises in seizing opportunities in the Pudong Free Trade Zone and exploring the Central Asian market [3]. - The event featured a keynote speech by Liang Zhonghua, Chief Macro Analyst at Guotai Junan Securities, providing macroeconomic insights for corporate strategic decision-making [5]. Group 3: Support Services - The Shanghai Pudong New Area Business Committee's Deputy Director Dong Xiaoling delivered a presentation on development opportunities in Pudong, aiding enterprises in understanding regional dynamics [5]. - A strategic cooperation agreement was signed between the Shanghai Pudong New Area Enterprise Going Global Comprehensive Service Center and Jiangsu Bank Shanghai Branch to empower enterprises in their international ventures [5]. Group 4: Market Opportunities - Ding Hai, Vice President of Suhao Holdings Group, introduced the China-Central Asia Trade Connectivity Cooperation Platform, offering comprehensive support for enterprises entering the Central Asian market [8]. - Askar Dairova, representative from the Kazakhstan Trade Policy Development Center, discussed Kazakhstan's trade policies and cooperation opportunities, providing essential references for enterprises [8]. Group 5: Financial Services - Jiangsu Bank's Assistant General Manager of the International Business Department, Chen Lingjia, elaborated on the "Suyin Cross-border" brand, which offers a comprehensive cross-border service solution based on a "4+6" financial and non-financial service system [10]. - The bank aims to continue providing one-stop support for clients' global operations, focusing on innovation and customer-centric services [12].