Core Viewpoint - Hangzhou Bank announced the approval of Wang Xigang's qualification as a director by the Zhejiang Regulatory Bureau of the National Financial Supervision Administration [2] Group 1 - The approval was communicated through a formal notice from the Zhejiang Regulatory Bureau [2] - The document reference number for the approval is 浙金复〔2025〕347号 [2]

关于董事任职资格获监管机构核准的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记 载、误导性陈述或者重大遗漏，并对其内容的真实性、准确性和 完整性承担法律责任。 证券代码：600926 证券简称：杭州银行 公告编号：2025-072 优先股代码：360027 优先股简称：杭银优1 杭州银行股份有限公司 杭州银行股份有限公司（以下简称"公司"）收到《国家金 融监督管理总局浙江监管局关于王西刚杭州银行董事任职资格 的批复》（浙金复〔2025〕347号），国家金融监督管理总局浙 江监管局已核准王西刚先生公司董事的任职资格。 王西刚先生的简历详见公司2025年6月17日刊登于上海证券 交易所网站(www.sse.com.cn）的《杭州银行股份有限公司2024 年年度股东大会会议材料》。 特此公告。 杭州银行股份有限公司董事会 2025年9月20日 1 ...

Market Performance - The city commercial bank sector increased by 0.39% on September 19, with Qilu Bank leading the gains [1] - The Shanghai Composite Index closed at 3820.09, down 0.3%, while the Shenzhen Component Index closed at 13070.86, down 0.04% [1] Individual Stock Performance - Qilu Bank's closing price was 5.67, up 2.90%, with a trading volume of 1,000,900 shares and a transaction value of 561 million [1] - Suzhou Bank closed at 8.15, up 2.00%, with a trading volume of 546,900 shares and a transaction value of 441 million [1] - Hangzhou Bank closed at 15.41, up 1.72%, with a trading volume of 527,000 shares and a transaction value of 803 million [1] - Jiangsu Bank closed at 10.26, up 0.79%, with a trading volume of 1,279,700 shares and a transaction value of 1.309 billion [1] - Other notable performances include: - Changsha Bank: 9.10, up 0.66% - Xiamen Bank: 6.37, up 0.47% - Chengdu Bank: 17.53, up 0.46% - Chongqing Bank: 9.08, up 0.22% - Qingdao Bank: 4.85, up 0.21% - Nanjing Bank: 10.48, unchanged [1] Capital Flow Analysis - The city commercial bank sector saw a net inflow of 268 million from institutional investors, while retail investors contributed a net inflow of 122 million [2] - The sector experienced a net outflow of 390 million from speculative funds [2] Individual Stock Capital Flow - Qilu Bank had a net inflow of 87.58 million from institutional investors, while it faced a net outflow of 69.65 million from speculative funds [3] - Ningbo Bank saw a net inflow of 65.53 million from institutional investors, with a net outflow of 71.36 million from speculative funds [3] - Suzhou Bank experienced a net inflow of 54.95 million from institutional investors, alongside a net outflow of 49.77 million from speculative funds [3] - Jiangsu Bank had a net inflow of 39.48 million from institutional investors, with a significant net outflow of 118 million from speculative funds [3]

Core Viewpoint - The banking sector is experiencing a downturn with significant declines in stock prices, while the technology sector remains strong. The banking AH index and the CSI banking index have both dropped over 13% since July 11, leading to a breach of the 120-day moving average for the first time in a year [1]. Group 1: Stock Performance and Dividend Yield - As bank stocks continue to decline, the dividend yield for the banking AH index has risen to 4.6%, suggesting potential value for investors [3][10]. - The banking AH index is currently valued at 0.69 times PB, indicating a certain level of investment attractiveness [10]. - The banking AH total return index has increased by 97.48% since January 1, 2019, outperforming the CSI banking total return index by over 10% and the CSI 300 total return index by 20.83% [10]. Group 2: Shareholder Activity - Several banks have reported shareholder increases, with Everbright Bank's controlling shareholder increasing their stake by 1.397 million shares, representing 0.02% of total shares, with an investment of 51.66 million yuan [4]. - Nanjing Bank received support from its major shareholder, Zijin Group, which increased its stake by approximately 5.678 million shares, raising its total holding from 12.56% to 13.02% [4]. - Other banks, including Huaxia Bank and Suzhou Bank, have also seen active participation from their directors and executives in increasing their holdings, reflecting confidence in future growth [4][5]. Group 3: Institutional Investment Trends - Insurance capital's holdings in the banking sector reached 28.24%, an increase of 1.04% from the previous quarter, although the market value held by insurance companies slightly decreased to 6.5% of the A-share market [6]. - Social security funds have also increased their holdings in the banking sector, with a rise to 51.71%, up 2.48 percentage points [7]. - Insurance companies have made 11 significant investments in listed banks this year, primarily in H-shares, indicating continued interest in the sector due to attractive dividend yields and stable performance [7]. Group 4: Dividend Distribution - As of September 17, 2025, 17 listed banks have announced a total dividend distribution of 237.54 billion yuan for the mid-year, with Industrial and Commercial Bank of China leading with a total dividend of 50.396 billion yuan [8][9]. - Other major banks, including China Construction Bank and Agricultural Bank of China, have also announced substantial dividends, further enhancing the stability and sustainability of bank stock dividends [8].

Market Overview - On September 18, the major indices in the A-share market experienced a decline, with the ChiNext Index falling by 1.64%, the Shanghai Composite Index down by 1.15%, and the Shenzhen Component Index decreasing by 1.06% [1] - The total trading volume for the day was 3.17 trillion yuan, compared to 2.4 trillion yuan the previous day [1] Stock Performance - The FTSE China A50 Index futures saw a decline of 1.44%, with over 4,300 stocks in the market experiencing a drop [3] - The banking sector faced a significant downturn, with major banks like Agricultural Bank of China and China Construction Bank dropping over 2% and 1% respectively [5] - Conversely, the robotics sector showed strong performance, with stocks like Shoukai Co. hitting the daily limit for 12 consecutive days [3] Banking Sector Insights - The banking sector has seen a continuous decline, with the AH Index and the China Securities Banking Index both dropping over 13% since July 11 [6] - As of September 17, the dividend yield for the banking AH Index rose to 4.6%, indicating a potential opportunity for investors [8][16] - Several banks have reported shareholder increases, with notable actions from major shareholders like Everbright Group and Zijin Trust [10][11] Dividend Distribution - By September 17, 17 listed banks announced a total dividend of 237.54 billion yuan for the mid-year of 2025, with Industrial and Commercial Bank of China leading with a dividend of 50.396 billion yuan [14][15] - The trend of increasing dividends reflects confidence in the banks' future development and long-term investment value [11] Institutional Investment Trends - Insurance funds have increased their holdings in the banking sector, reaching a position of 28.24% as of the second quarter of 2025, while social security funds also raised their holdings to 51.71% [13] - The banking sector's low valuation and stable dividends continue to attract institutional investors, particularly those seeking steady returns [13][17]

Market Overview - The Shanghai Composite Index closed at 3877.55 points, with a change of 0.41% [1] - The total trading volume of A-shares reached 1561.918 billion yuan [1] Technical Analysis - A total of 127 A-shares experienced a death cross, where the 5-day moving average fell below the 10-day moving average [1] - Notable stocks with significant distance between their 5-day and 10-day moving averages include: - COFCO Technology: 5-day MA at 11.41 yuan, 10-day MA at 11.52 yuan, difference of -0.92% [1] - Jiuri New Materials: 5-day MA at 27.35 yuan, 10-day MA at 27.59 yuan, difference of -0.86% [1] - Potential Energy Trust: 5-day MA at 20.44 yuan, 10-day MA at 20.59 yuan, difference of -0.77% [1] Individual Stock Performance - COFCO Technology: Today's change of 0.09%, trading volume of 1.13% [1] - Jiuri New Materials: Today's change of 1.49%, trading volume of 1.84% [1] - Potential Energy Trust: Today's change of 0.34%, trading volume of 1.64% [1] - Other notable stocks with death crosses include: - Tongzhou Electronics: Today's change of -0.42%, trading volume of 2.40% [1] - ST Long Pharmaceutical: Today's change of -2.50%, trading volume of 2.14% [1] - Jin Hong Shun: Today's change of -1.44%, trading volume of 2.07% [1]

Core Viewpoint - Hangzhou Bank reported strong half-year results with a net profit of 11.662 billion yuan, a year-on-year increase of 16.66%, demonstrating resilience and effective risk management in a complex economic environment [1] Group 1: Financial Performance - The bank achieved a net profit of 11.662 billion yuan in the first half of 2025, reflecting a 16.66% increase compared to the previous year [1] - The non-performing loan (NPL) ratio remained stable at 0.76%, indicating strong asset quality [1] - The provision coverage ratio reached 520.89%, positioning the bank among the leaders in the listed banking sector [1] Group 2: Risk Management Strategy - The bank emphasizes a risk management philosophy of "not trading risk for growth," focusing on maintaining a balance among volume, quality, profit, and risk [1] - Continuous improvement of risk control mechanisms includes regular risk assessments and a large client warning system to ensure early identification and management of credit risks [1][2] - The bank has established specialized teams in key sectors like manufacturing and technology finance, enhancing frontline risk control efficiency [2] Group 3: Provisioning and Counter-Cyclical Management - Hangzhou Bank adheres to a prudent provisioning policy, with a provision coverage ratio exceeding 520%, which serves as a buffer against potential risks [3] - The bank's proactive provisioning strategy helps smooth profit fluctuations and enhances operational stability [3] - Future plans include maintaining a leading provisioning level to ensure financial flexibility for long-term profit growth [3] Group 4: Asset Quality and Structural Adjustments - The bank implements cautious entry policies and continuously adjusts its asset structure, with real estate loans accounting for less than 4% of total loans [4] - There are currently no non-performing loans in the renewable energy sector, and the bank is optimizing its service model for export enterprises [4] - Strategies to manage interest rate and liquidity risks include optimizing investment account structures and reducing high-volatility assets [4] Group 5: Sustainable Development through Risk Control - Risk management is viewed as a lifeline for sustainable development, with the bank developing a distinctive risk control model that has yielded excellent results [5] - The bank's risk control capabilities are seen as a cornerstone for continued high-quality development in a complex and changing environment [5]

Market Overview - On September 15, the city commercial bank sector declined by 0.85% compared to the previous trading day, with Xi'an Bank leading the decline [1] - The Shanghai Composite Index closed at 3860.5, down 0.26%, while the Shenzhen Component Index closed at 13005.77, up 0.63% [1] Individual Bank Performance - Zhengzhou Bank closed at 2.07, up 0.98% with a trading volume of 1.38 million shares and a transaction value of 286 million yuan [1] - Xi'an Bank closed at 4.19, down 1.87% with a trading volume of 438,000 shares and a transaction value of 184 million yuan [2] - The highest decline was observed in Chengdu Bank, which closed at 18.07, down 0.93% [1] Capital Flow Analysis - The city commercial bank sector experienced a net outflow of 797 million yuan from institutional investors, while retail investors saw a net inflow of 348 million yuan [2] - The main capital inflow and outflow for individual banks varied, with Hangzhou Bank seeing a net inflow of 61.64 million yuan from institutional investors [3] - Conversely, Suzhou Bank experienced a net outflow of 11.76 million yuan from institutional investors [3]

Group 1 - The recruitment market is experiencing a peak during the "golden September and silver October" period, with major banks like ICBC, ABC, SPDB, and CMB launching their 2026 campus recruitment initiatives [1][2] - There is a significant demand for fintech talent, with some banks reporting a 100% increase in the need for such positions [2][3] - The focus on AI-related talent is growing, with banks like ICBC introducing specialized recruitment for AI roles for the first time, aiming to hire around 20 individuals with backgrounds in artificial intelligence and big data [2][3] Group 2 - Local banks are also actively seeking AI talent, with institutions like Hangzhou Bank and Shanghai Rural Commercial Bank offering positions related to AI and fintech [3] - The trend indicates a shift in the banking industry towards integrating AI into core business functions, moving from pilot projects to large-scale value creation [3][4] - The demand for AI talent reflects a broader transformation where AI is becoming a strategic foundation rather than just a tool, with three key trends: AI becoming a core driver, accelerated data value release, and deep organizational restructuring [4][5] Group 3 - The salary range for AI-related positions in banks is generally lower than that in internet companies, with annual salaries for algorithm positions in banks typically between 200,000 to 350,000 yuan [6][7] - Many banks require new hires to undergo a rotation in grassroots positions, even for tech roles, indicating a comprehensive training approach [7] - The urgent need for "AI + business" hybrid talent highlights the challenges and opportunities in the banking sector, as organizations face pressures in both recruitment and training of such talent [7]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Chinese Banking Sector - **Date of Conference**: September 3-5, 2025 - **Location**: Hangzhou and Beijing Core Insights 1. **Economic Support and Government Policies**: The Chinese government has prioritized economic support through various policies since September 2024, including rate cuts and consumption stimuli, leading to a recovering capital market and alleviation of local government financing vehicle (LGFV) debt issues [2][3][4] 2. **GDP Growth Outlook**: Despite recent weakening economic data, experts believe China is on track to meet its approximately 5% GDP growth target for 2025, aided by a favorable base effect in the second half of the year. However, 2026 presents heightened risks [3][12] 3. **Monetary and Fiscal Policies**: Further policy rate cuts are deemed unlikely for the remainder of 2025, with a preference for targeted fiscal subsidies. The potential introduction of a consumption tax reform in 2025 is also noted [3][4][12] 4. **Inflation and Economic Structure**: Weak inflation persists, attributed to structural issues and overcapacity in the investment-driven growth model, particularly in manufacturing. Experts emphasize the need for long-term structural reforms [11][13] 5. **Capital Market Recovery**: The capital market is showing signs of recovery, supported by easing US-China tensions and improved global liquidity. The upward momentum is expected to continue [15] Banking Sector Insights 1. **Net Interest Margin (NIM) Outlook**: Banks are less negative about NIM outlooks, with many indicating that NIM is near its bottom and may stabilize soon. However, loan demand remains lackluster, particularly from non-government corporates and retail sectors [5][24] 2. **Dividend Preferences**: In light of macroeconomic uncertainties, banks with higher dividend yields, such as ICBC, CCB, CITIC, and regional banks like BOCD and BOHZ, are preferred [5][24] 3. **Individual Bank Performance**: - **ICBC**: Expects improved earnings in H2 2025, driven by fee income growth and trading gains, despite a slight decline in NIM [25] - **CCB**: Anticipates NIM stabilization, with potential downward pressure from previous LPR cuts [26] - **BOC**: Expects NIM to bottom out and aims to prioritize wealth management and consumer finance [27] - **CITIC**: Predicts stable NIM and improvement in retail asset quality by early next year [28] - **SPDB**: Noted revenue and NPAT growth in H1, with a focus on technology finance and inclusive finance [30] Additional Considerations 1. **Consumption Trends**: Retail consumer goods sales growth has slowed, with services consumption becoming increasingly significant, accounting for approximately 46% of total consumption in 2024. Policies to boost consumption are expected to be emphasized [16][17] 2. **Property Market Dynamics**: The residential property market remains weak, but there is high demand for quality homes. Experts express skepticism about new property policies due to limited room for easing [22][18] 3. **Tariff and Trade Outlook**: Tariffs are expected to remain stable, with potential RMB appreciation driven by trade dynamics. The relationship between China and the US is characterized as tight, with full decoupling seen as unlikely [19][22] Conclusion The conference highlighted a cautious yet optimistic outlook for the Chinese banking sector, with a focus on stabilizing NIMs, improving asset quality, and navigating macroeconomic challenges. The emphasis on structural reforms and consumption growth indicates a strategic shift in policy direction moving forward.