Core Viewpoint - The banking convertible bond market is likely to experience a new wave of early redemption as several bank convertible bonds approach their redemption thresholds, highlighting the scarcity of blue-chip convertible bonds in the market [1][3]. Group 1: Early Redemption Triggers - Hangzhou Bank's convertible bond (杭银转债) is on the verge of triggering early redemption, with its stock price consistently above the required threshold [2]. - Nanjing Bank's convertible bond (南银转债) is also nearing its early redemption phase, as its stock price has surpassed the redemption price [3]. - The overall performance of bank stocks has been strong, with the China Securities Banking Index rising by 44.84% in 2024, contributing to the upward trend in bank convertible bond prices [3]. Group 2: Market Dynamics - The issuance of new convertible bonds this year is only 17 billion yuan, significantly lower than the amount being delisted, leading to a supply-demand imbalance [1]. - The scarcity of blue-chip convertible bonds is expected to increase as more bank convertible bonds are redeemed, while the supply of smaller convertible bonds remains high, potentially increasing market volatility [1][4]. - The market is anticipated to shrink due to natural expirations of convertible bonds, with a notable reduction in available supply as 50 billion yuan of Shanghai Pudong Development Bank's convertible bonds approach maturity [3]. Group 3: Investment Strategies - The strategy of investing in low-priced convertible bonds is facing challenges as the market shifts, with many bank convertible bonds now in the mid to high price range [5]. - Analysts suggest that the current market has about 10 bank convertible bonds, with total outstanding amounts potentially decreasing from 170 billion yuan to around 100 billion yuan, increasing the scarcity of large bank convertible bonds [5]. - Public funds are expected to adjust their performance evaluation mechanisms, leading to a potential increase in the allocation of high-rated, undervalued bank convertible bonds, which may present opportunities for excess returns [5].

Summary of Hangzhou Bank Conference Call Company Overview - **Company**: Hangzhou Bank - **Industry**: Banking, specifically focusing on city commercial banks in China Key Points and Arguments Industry and Economic Context - The restructuring of fund allocation logic towards bank stocks, combined with the economic development and infrastructure investment growth in Zhejiang Province, benefits Hangzhou Bank, which primarily focuses on urban construction-related businesses [2] - The recovery in real estate sales also positively impacts Hangzhou Bank's operations [2] Asset Quality and Financial Performance - Hangzhou Bank maintains excellent asset quality with a non-performing loan (NPL) ratio of approximately 0.76% and a provision coverage ratio exceeding 500%, significantly higher than peers [2][15] - The bank's corporate loan NPL ratio continues to decline, effectively offsetting retail loan risks [2] - The expected loan growth rate for 2025 is projected to be between 12% and 13%, driven by a credit growth rate in Zhejiang Province that exceeds the national average [2][7] Net Interest Margin and Revenue Growth - Although Hangzhou Bank's net interest margin (NIM) is not high, the significant reduction in deposit costs is expected to stabilize or even increase NIM in 2025, supporting nearly double-digit revenue growth [2][14] - The bank's asset-liability structure is advantageous, with a stable NIM and a focus on high-quality assets [4][10] Strategic Developments - The entry of New China Life Insurance as the fourth strategic shareholder is anticipated to enhance collaboration in bancassurance business, improving strategic cooperation efficiency [2][25] - Hangzhou Bank has a first-mover advantage in the sci-tech finance sector, although its current market share in this area is relatively low [2][11] Market Opportunities and Challenges - The ongoing economic development in Zhejiang Province, particularly in the tech sector, is expected to positively influence Hangzhou Bank's long-term growth [5] - The real estate market in Hangzhou is showing signs of recovery, with positive growth in sales area since Q4 2024, which will benefit mortgage lending and asset quality management [6] - The bank's focus on government-related loans, which constitute about 46% of its loan portfolio, positions it well against rising retail loan risks [8][9] Future Outlook - The bank's capital adequacy ratio is projected to rise to 9.8%-9.9%, providing a solid foundation for future expansion and strategic investments [22] - The expected return on equity (ROE) for 2024 is forecasted to be between 16% and 18%, with a stable outlook for the following years [20] - Hangzhou Bank's valuation is currently low, with a projected price-to-book (PB) ratio of approximately 0.82 for 2025, with potential for upward adjustment post-convertible bond pressure relief [24] Investment Recommendations - Hangzhou Bank is recommended as a core investment due to its potential to reach a PB ratio of one and its strong fundamentals, which could drive overall valuation increases in the city commercial banking sector [26] Additional Insights - The bank's conservative risk appetite and strong asset quality provide a competitive edge, with expectations for profit growth and ROE to remain industry-leading over the next three years [23] - The bank's strategy includes optimizing its loan structure and increasing the proportion of corporate and government-related loans while exploring growth in the sci-tech finance sector [12][16]

Investment Rating - The report indicates a positive outlook for the banking sector, suggesting that certain stocks may have alpha potential due to policy catalysts and a cyclical recovery [4]. Core Insights - Multiple banks have lowered their deposit rates, with the one-year and five-year Loan Prime Rate (LPR) reduced by 10 basis points on May 20, 2025. This trend reflects a broader market-driven decline in deposit costs [1][2]. - The average deposit cost rate for China Merchants Bank decreased significantly by 25 basis points to 1.29% in Q1 2025, indicating a trend of improving deposit costs across the sector [1]. - The report highlights that banks like Chongqing Bank, Minsheng Bank, and CITIC Bank have substantial room for further deposit cost reductions, suggesting a favorable environment for banks to optimize their funding costs [2]. Summary by Sections Section 1: Focus of the Week - Several banks have adjusted their deposit rates downward, with over half of listed banks participating in this trend by May 24, 2025 [1]. - The report notes that the average deposit cost rate for China Merchants Bank has shown improvement since Q2 2024, aligning with previous forecasts of enhanced cost reduction in liabilities [1]. Section 2: Sector Perspective - The banking sector is expected to benefit from expansionary policies aimed at stabilizing the economy, with specific banks like Ningbo Bank, Postal Savings Bank, and China Merchants Bank highlighted as potential investment opportunities [4]. - The report emphasizes that the cyclical recovery may take time, but the ongoing interest rate cuts could sustain the dividend strategy for banks like Shanghai Bank and Jiangsu Bank [4]. Section 3: Key Data Tracking - The report tracks various financial metrics, including the issuance of interbank certificates and the average rates for different types of bank notes, indicating a dynamic market environment [9][8]. - It also notes the increase in the proportion of deposits with a remaining maturity of less than one year, which rose by 3 percentage points to 37.4% by the end of 2024, suggesting a trend towards concentrated deposit maturities [2][16].

Investment Rating - The report maintains an "Overweight" rating for the banking sector [7] Core Views - The asymmetric interest rate cuts have alleviated pressure on interest margins, with the central bank lowering the 1-year and 5-year Loan Prime Rate (LPR) by 10 basis points [1] - The reduction in deposit rates has a more significant impact than the LPR cuts, providing a net positive effect on banks' interest margins and net profit growth [2] - The banking sector is expected to benefit from a favorable policy environment aimed at economic recovery, with structural opportunities in high-quality banks [5] Summary by Sections Interest Rate Adjustments - The central bank's recent interest rate cuts are expected to positively influence banks' interest margins, with estimated impacts of +2.3 basis points and +1.4 basis points on interest margins for 2025 and 2026, respectively [2][22] - The reduction in deposit rates has been more pronounced than the LPR cuts, with large banks reducing rates across various deposit terms [2][3] Deposit Trends - The banking sector is approaching a peak in deposit re-pricing, which is expected to improve funding costs as significant amounts of fixed-term deposits mature [3] - Despite the positive adjustments in deposit rates, there are concerns about the attractiveness of deposit products, which may lead to liquidity risks for banks [4] Policy Environment - Recent policy measures, including interest rate cuts and structural monetary tools, are expected to support economic stability and improve the banking environment [5] - The report highlights the potential for high dividend yields in large banks, making them attractive for investment [5] Stock Recommendations - The report recommends several banks for investment, including: - Hangzhou Bank (600926 CH) - Overweight - Shanghai Bank (601229 CH) - Buy - Chengdu Bank (601838 CH) - Buy - Chongqing Rural Commercial Bank (3618 HK) - Buy - China Merchants Bank (600036 CH) - Buy - Industrial Bank (601166 CH) - Buy - Agricultural Bank of China (601288 CH) - Overweight [9][24]

Core Insights - Financial sector plays a crucial role in promoting technological innovation, with Zhejiang province enhancing financial policy tools to support digital, intelligent, and green transformations [1][2] - As of the end of Q1, the loan balance for the technology service industry in Zhejiang reached 3.17 trillion yuan, marking a year-on-year growth of 19.6%, surpassing the overall loan growth rate by 10.9 percentage points [1] Group 1: Financial Support and Policy Initiatives - Zhejiang province has implemented the "Implementation Rules for Increasing Support for Technology Enterprises Financing," focusing on enhancing financial services for technology firms [1] - The province has initiated a special action to improve technology financial service capabilities, establishing a "four-special" service mechanism involving specialized teams, products, processes, and evaluations [1] Group 2: Regional Financial Innovations - The People's Bank of China, Zhejiang branch, is guiding the establishment of a robust technology financial service system in Hangzhou and Jiaxing, with significant loan growth in these areas [2] - As of March, the technology service industry loan balance in Hangzhou grew by 14.8%, while Jiaxing saw a remarkable increase of 27.5%, both exceeding the overall loan growth rates [2] Group 3: Innovative Financial Products - Zhejiang province is diversifying technology financial product offerings, encouraging banks to develop equity loans and acquisition loans to support strategic emerging industries [2] - The "Zhe Ke Loan" financing service has been introduced, providing hard technology enterprises with favorable loan terms, including maximum loan amounts, extended durations, and optimal interest rates [2] - Jiaxing Bank is exploring a "twin investment-loan" model to address challenges in external investment-loan coordination, while Hangzhou Bank collaborates with third-party investors to support technology enterprises through equity options [2]

Investment Rating - The report maintains a "Positive" investment rating for the banking sector [12] Core Insights - The Yangtze Bank Index increased by 1.5% this week, outperforming the CSI 300 Index by 0.3% and the ChiNext Index by 0.1%. The recent public fund regulations are expected to drive long-term fund allocations towards the banking sector, which has been underrepresented compared to its weight in the CSI 300 [2][6] - The report highlights that the average dividend yield of the five major state-owned banks in A-shares is 4.47%, with a significant spread of 279 basis points over the 10-year government bond yield. The H-shares have an even higher average dividend yield of 5.77%, indicating a notable valuation discount compared to A-shares [7][22] - In April, new social financing totaled 1.16 trillion yuan, primarily driven by government bonds, while new RMB loans were only 280 billion yuan, reflecting a year-on-year decrease of 450 billion yuan. The report anticipates a continuation of weak credit issuance in May, with banks expected to increase lending intensity by the end of June [8][29] - The report notes a significant decline in net interest margins for commercial banks, with an overall decrease of 9 basis points to 1.43% in Q1 2025. State-owned banks saw a drop of 11 basis points to 1.33%, marking a historical low, while city commercial banks performed better due to lower mortgage ratios and strong local credit demand [9][39] Summary by Sections Market Performance - The Yangtze Bank Index's performance this week indicates a positive trend, with specific banks like Ruifeng Bank leading the gains [2][6] Dividend Yields and Valuation - The report emphasizes the attractive dividend yields of state-owned banks compared to government bonds, suggesting potential investment opportunities in H-shares due to their valuation discount [7][22] Credit and Financing Trends - April's financing data shows a reliance on government bonds for social financing growth, with a notable decline in new loans, indicating a cautious lending environment [8][29] Banking Sector Profitability - The decline in net interest margins across the banking sector highlights challenges in profitability, particularly for state-owned banks, while city commercial banks show resilience [9][39]

Core Viewpoint - Multiple banks are actively responding to investor concerns regarding credit business, asset quality, and strategic planning, indicating a proactive approach to stabilize market expectations and enhance investor confidence [1] Group 1: Credit Business - Banks are aligning their credit support with national policies, focusing on private enterprises and inclusive finance as key areas for lending in 2025 [2] - Qilu Bank plans to increase support for new manufacturing, infrastructure, technology innovation, green finance, and rural revitalization, while maintaining steady growth in corporate credit [2] - Shanghai Rural Commercial Bank has set a credit increment target of 50 billion yuan for the year, with a growth rate of 6% to 7%, emphasizing support for the real economy and private sector [3] Group 2: Asset Quality - The overall asset quality of the banking industry remains stable, with Qilu Bank reporting a non-performing loan (NPL) ratio of 1.17%, down 0.02 percentage points from the beginning of the year [4] - Hangzhou Bank maintains a NPL ratio of 0.76% and a provision coverage ratio of 530.07%, indicating strong asset quality management [4][5] Group 3: Business Strategy Planning - Banks are adopting differentiated development paths, with Lanzhou Bank focusing on its "1363" strategic layout and preparing for future strategic planning [6] - Jiangsu Bank emphasizes a balanced approach to cost reduction and growth, while expanding non-interest income through various services [7] - Chengdu Bank is advancing digital transformation to enhance operational efficiency and drive high-quality development [7] Group 4: Market Opportunities - The banking sector is presented with opportunities due to policy support for green and technology finance, as well as structural monetary policy tools that optimize funding costs [7] - Leading banks can leverage resource advantages to expand wealth management and non-interest income, while regional banks should focus on local industries to build competitive advantages [7]

证券代码：600926 证券简称：杭州银行 公告编号：2025-026 优先股代码：360027 优先股简称：杭银优 1 可转债代码：110079 可转债简称：杭银转债 杭州银行股份有限公司 关于"杭银转债"可能满足赎回条件的提示性公告 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。 重要内容提示： 杭州银行股份有限公司（以下简称"公司"）股票自 2025 年 4 月 29 日至 2025 年 5 月 19 日的 12 个交易日中已有 10 个交 易日的收盘价不低于"杭银转债"当期转股价格 11.35 元/股的 130%（含 130%），即 14.76 元/股。 二、可转债有条件赎回条款 1、在本次发行可转债的转股期内，如果公司 A 股普通股股 票连续三十个交易日中至少有十五个交易日的收盘价格不低于 当期转股价格的 130%（含 130%），经相关监管部门批准（如需）， 公司有权按照债券面值加当期应计利息的价格赎回全部或部分 未转股的可转债。若在上述交易日内发生过因除权、除息等引起 公司转股价格调整的情形，则在调整前的交易日 ...

Group 1 - The 20th Central Committee of the Communist Party of China emphasizes accelerating the construction of a multi-level bond market to align with technological innovation [1] - The People's Bank of China and the China Securities Regulatory Commission jointly announced support for the issuance of technology innovation bonds, introducing a "Technology Board" in the bond market [1] - Industrial and Commercial Bank of China (ICBC) Hangzhou Branch successfully underwrote the first batch of technology innovation bonds in China, raising 5 billion yuan for Hangzhou Bank and 4.6 billion yuan for Zhejiang State-owned Capital Operation Co., Ltd [1][2] Group 2 - Hangzhou Bank is a leading commercial bank in China, and the funds raised from the technology innovation bonds will support technological innovation through various financing methods [1] - Zhejiang State-owned Capital Operation Co., Ltd is the only provincial-level state-owned capital operation company in Zhejiang, and the issuance of technology innovation bonds provides a replicable model for similar institutions [2] - The successful issuance of these bonds is a significant step for ICBC Hangzhou Branch in implementing national strategies for technological innovation, broadening financing channels for tech enterprises, and stimulating market vitality [2]

编 辑丨巫燕玲 5月1 5日，A股震荡回调，但银行板块整体表现仍相对强势， 农业银行、浦发银行等多只银行 股创历史新高。银行板块总市值突破1 0万亿元大关，再创历史新高 。 市场有观点认为，这背后或与公募和险资抢筹银行股有关。 其逻辑之一是部分银行股息率高企，引发险资抢筹配置需求。 另外一部分逻辑，则与5月7日发布的《推动公募基金高质量发展行动方案》（下称《行动方 案》）有关。有市场人士称，在《行动方案》中，基金经理薪酬与业绩挂钩。主动权益基金 通 常 会 选 取 沪 深 3 0 0 等 代 表 性 宽 基 指 数 作 为 业 绩 基 准 ， 而 沪 深 3 0 0 指 数 中 银 行 板 块 权 重 高 达 1 3 . 6 7%。因此，为了不让净值与业绩比较基准偏离太多，基金在加速回补低配的银行股，才 导致了金融板块的抢货潮。 银行股创新高 截自5月1 5日，申万一级银行指数今年以来上涨8 . 0 2%，重庆银行、渝农商行、青岛银行、上 海银行、齐鲁银行等更是暴涨逾2 0%。 作 者丨庞华玮 工商银行、建设银行、农业银行、中国银行等四大行，以及浦发银行、光大银行、上海银行 等股份制银行和城商行也均在近期创出 ...