1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - This week, convertible bonds performed slightly better than underlying stocks, and the valuation of high - rated convertible bonds increased slightly. Affected by marginal trading sentiment, the performance of convertible bonds was weak first and then strong. With the strong performance of the large - cap style in the equity market and the accelerated conversion of some bank convertible bonds, the valuation of high - rated large - cap convertible bonds increased slightly and is expected to remain stable due to the scarcity of bottom - position varieties. Small - cap convertible bonds may continue to show a volatile and differentiated trend [1][8]. - In a volatile stock - bond market, convertible bond assets with strong valuation support are expected to achieve good relative returns. It is recommended to maintain a neutral position, trade frequently, and accumulate small gains. In terms of allocation, it is recommended to focus on high - dividend large - cap debt - biased convertible bonds, combined with a balanced and equity - biased direction. Pay attention to recent cases of proposed downward revisions and look for potential targets with a strong willingness to promote conversion. Asymmetrical trading, double - low momentum, and clause - based gaming strategies are still recommended [1][8]. 3. Summary by Relevant Catalogs 3.1 Weekly Viewpoint and Outlook - Convertible bonds were slightly stronger than underlying stocks this week, and high - rated convertible bond valuations rose slightly. Affected by marginal trading sentiment, convertible bond performance was weak first and then strong. High - rated large - cap convertible bond valuations may remain stable, while small - cap convertible bonds may be volatile and differentiated. It is recommended to maintain a neutral position, trade frequently, and focus on high - dividend large - cap debt - biased convertible bonds, combined with a balanced and equity - biased direction [1][8]. 3.2 Convertible Bond Valuation - The 100 - yuan premium rate of the entire market's convertible bonds was 29%, down 0.18% week - on - week, and the latest quantile was at the 75.1 percentile since 2017. The 100 - yuan premium rate of low - rated convertible bonds was 23%, down 0.42% week - on - week, at the 68 percentile since 2017. The 100 - yuan premium rate of high - rated convertible bonds was 22%, up 0.1% week - on - week, at the 82.5 percentile since 2017 [4][9]. - The conversion premium rate of convertible bonds decreased, while the pure - bond premium rate and yield to maturity changed little. As of the latest data, the conversion premium rate index, pure - bond premium rate index, and yield to maturity were 47.5%, 25.31%, and - 2.36% respectively, with changes of - 0.74%, 0.07%, and 0.02% compared to last week, and their current quantile levels were at the 73.1, 30.2, and 18 percentiles since 2017 [4][14]. 3.3 Clause Tracking 3.3.1 Redemption - This week, Farland, Hangzhou Bank, and Zhengyu Convertible Bonds issued early redemption announcements. The potential maturity or conversion balance of convertible bonds subject to early redemption or maturity among those still trading is 306 million yuan. As of now, there are 26 convertible bonds in the redemption process, and 5 are expected to meet the redemption conditions next week and should be monitored [4][19]. - This week, Outong and Yinlun Convertible Bonds announced that they would not redeem the bonds early. As of now, 50 convertible bonds are within the non - redemption period [4][22]. 3.3.2 Downward Revision - One convertible bond issued a board proposal for a downward revision this week. As of now, 167 convertible bonds are in the non - downward - revision interval, 2 have triggered the condition and the stock price is still below the downward - revision trigger price but no announcement has been made, 43 are in the downward - revision process, and 2 have issued board proposals for downward revision but have not yet gone to the general meeting of shareholders [4][23]. 3.3.3 Put Option - No new convertible bonds issued put - option announcements this week. As of now, 8 convertible bonds are in the cumulative put - option process, 2 are in the downward - revision process, and 3 have issued put - option announcements [4][26]. 3.4 Primary Issuance - One new convertible bond, Hengshuai Convertible Bond, was issued this week with an issuance scale of 328 million yuan. There are no new issuances or listings scheduled for next week [4][29]. - As of now, there are 10 convertible bonds in the approval - registration process with an expected issuance scale of about 1.59 billion yuan, and 4 in the listing - committee approval process with an expected issuance scale of about 320 million yuan [4][29].

Group 1 - The core idea of the article is that Hangzhou Bank's Beijing branch is promoting financial knowledge through cultural activities during the Dragon Boat Festival, integrating traditional customs with financial education [1][12] Group 2 - The "Zongzi Wrapping" activity involved community residents making rice dumplings while learning about financial fraud prevention, particularly targeting the elderly with practical examples [2][6] - The "Dragon Boat Racing" event allowed clients to create themed decorations while bank staff explained the risks of illegal fundraising and personal information leakage [5][6] - A lecture titled "How to Protect Your Wallet in the New Era" was conducted, covering measures such as personal information protection and rational investment choices, followed by a hands-on experience of making traditional handicrafts [9][10]

Core Viewpoint - The banking sector is experiencing a strong rally, with significant price increases and multiple stocks reaching historical highs, driven by macroeconomic factors and changes in fund management strategies [1][2][3]. Group 1: Banking Sector Performance - The banking sector rose by 0.95% on the last trading day before the Dragon Boat Festival, with a year-to-date increase of 9.6% [2]. - All 42 bank stocks in the sector closed in the green, with notable gains from CITIC Bank, Chongqing Rural Commercial Bank, and others, where CITIC Bank saw the highest increase of 3.12% [2]. - Hangzhou Bank and Chengdu Bank reached new historical highs, with prices hitting 16.58 yuan and 19.46 yuan respectively [2]. Group 2: Investment Trends and Fund Management - The strong performance of bank stocks is attributed to their defensive characteristics amid a complex global economic environment, making them attractive to risk-averse investors [2][3]. - Recent regulatory changes by the China Securities Regulatory Commission emphasize performance benchmarks for fund managers, which may lead to increased allocations to bank stocks as managers seek to align with benchmarks [3]. - Currently, the proportion of bank holdings in active funds is only 3.81%, while the weight of the banking sector in the CSI 300 index is 13.67%, indicating a significant deviation that may prompt fund managers to increase their bank stock holdings [3]. Group 3: Convertible Bonds and Market Dynamics - The rise in bank stock prices has alleviated the issue of low conversion rates for bank convertible bonds, with Hangzhou Bank opting for early redemption of its convertible bonds [5]. - Suzhou Bank also triggered early redemption of its convertible bonds, with a redemption price of 101.35 yuan per bond, reflecting a broader trend in the banking sector [6]. - The market for bank convertible bonds is expected to shrink significantly, with only 10 remaining in circulation and no new issuances since 2023, leading to a potential "gap" in the market [7].

Group 1 - Several bank stocks rose against the market trend, with notable increases including Chongqing Rural Commercial Bank (1.69%), Shanghai Rural Commercial Bank (1.48%), and Nanjing Bank (1.15%) [1] - Hangzhou Bank's stock price reached a historical high, with institutions attributing this to policy support and improved risk management capabilities, leading to better asset quality and regulatory indicators for commercial banks [2] - The China Securities Bank ETF closely tracks the China Securities Bank Index, providing an analytical tool for investors by categorizing sample securities into various industry levels [2] Group 2 - As of April 30, 2025, the top ten weighted stocks in the China Securities Bank Index accounted for 65.11% of the index, including major banks like China Merchants Bank and Industrial and Commercial Bank of China [3]

A股银行板块小幅拉升，渝农商行涨逾2%，杭州银行、青农商行、沪农商行涨逾1%。 ...

Core Viewpoint - The article emphasizes the performance of regional banks in China, particularly focusing on city commercial banks and rural commercial banks, highlighting the economic vitality of regions like Jiangsu and Zhejiang compared to others like Guangdong and Shanghai [3][4][10]. Group 1: Regional Bank Performance - Jiangsu and Zhejiang regions are identified as having strong city commercial banks, with institutions like Jiangsu Bank and Ningbo Bank showing robust performance, indicating high economic vitality [8][9]. - In contrast, banks headquartered in Shanghai, such as Shanghai Bank and Hu'nong Bank, have underperformed, attributed to the city's "deposit surplus" characteristic and intense competition [17][21]. - Guangdong, despite being the largest economy, lacks representation in the top city commercial banks, with local banks like Guangzhou Bank showing poor performance and significant declines in revenue and profit [23][25][28]. Group 2: Economic Indicators - Jiangsu and Zhejiang's GDP growth rates are 5.8% and 5.5% respectively, outperforming Guangdong's 3.5%, showcasing their economic competitiveness [9][28]. - The article suggests that examining local bank performance can provide a clearer picture of regional economic health than GDP figures alone [6][10]. Group 3: Specific Bank Analysis - Jiangsu Bank reported a 16.12% growth in asset scale, with a net profit of 31.84 billion yuan, while Ningbo Bank achieved a 15.25% growth with a net profit of 27.12 billion yuan [11]. - Chengdu Bank has shown significant growth, with a 14.56% increase in asset scale and a 10.17% rise in net profit, attributed to its focus on local infrastructure projects [38][40]. - In contrast, Guangzhou Bank's asset scale grew only 2.77%, with a net profit decline of 66%, reflecting its struggles in retail and corporate sectors [25][26]. Group 4: Risk and Asset Quality - The article notes that banks in Jiangsu and Zhejiang maintain non-performing loan ratios below 1%, indicating strong asset quality, while banks in regions like Northeast China face higher non-performing rates [5][14][58]. - The article highlights that many banks in Jiangsu and Zhejiang have high provision coverage ratios, often exceeding 300%, which helps mitigate risks associated with potential loan defaults [14][15]. Group 5: Governance and Management Issues - Governance issues are prevalent in some central region banks, with several high-level executives facing investigations, impacting their performance [70][71]. - In contrast, banks in Jiangsu and Zhejiang have fewer governance issues, contributing to their stronger performance [31][72].

Core Viewpoint - The banking sector in China serves as a crucial economic barometer, reflecting regional economic conditions more accurately than the stock market, especially in the context of the new normal of slower economic growth [1][2][3]. Group 1: Regional Banking Performance - Over 100 city commercial banks and rural commercial banks released annual reports, revealing that banks in economically vibrant regions like Jiangsu and Zhejiang maintain low non-performing loan (NPL) ratios, often below 1% [2][4]. - Jiangsu and Zhejiang provinces rank second and fourth in GDP size, with growth rates of 5.8% and 5.5% respectively, outperforming Guangdong's 3.5% growth rate [5]. - Jiangsu Bank, Ningbo Bank, Nanjing Bank, and Hangzhou Bank are among the top city commercial banks, demonstrating strong performance despite macroeconomic pressures [4][6]. Group 2: Financial Metrics of Key Banks - Jiangsu Bank reported an asset scale of 3.95 trillion with a growth rate of 16.12%, revenue of 808.15 billion, and a net profit of 318.43 billion, reflecting a net profit growth of 10.76% [6]. - Ningbo Bank's asset scale reached 3.13 trillion, with a revenue of 666.31 billion and a net profit of 271.27 billion, showing a net profit growth of 6.23% [6]. - Hangzhou Bank's net profit growth was notably high at 18.07%, despite a lower net interest margin due to its focus on low-risk local government financing [8]. Group 3: Challenges in Other Regions - In contrast, banks in Guangdong, despite being in the top economic province, show poor performance, with Guangzhou Bank's asset scale growing only 2.77% and a significant drop in revenue and net profit [17][19]. - The performance of banks in the Northeast is hindered by high NPL ratios, often exceeding 2%, and low net interest margins, with some banks like Shengjing Bank reporting as low as 0.8% [56][58]. - The banking sector in the Northwest faces similar challenges, with low growth rates and high NPL ratios, reflecting a lack of quality projects and competition with larger state-owned banks [51][53]. Group 4: Governance Issues - Governance issues are prevalent in the central region, with several banks experiencing high-profile executive investigations, impacting their performance [68][70]. - Despite governance challenges, Huishang Bank has shown significant growth, with revenue increasing over 180% in the past decade, driven by the local economy [69][71]. Group 5: Emerging Opportunities - The banking sector in Fujian is thriving, with banks like Xiamen International Bank showing a 150% growth in asset scale over the past decade, supported by a robust private economy [26][28]. - Chengdu Bank has also seen substantial growth, with a 14.56% increase in asset scale, driven by a focus on local infrastructure projects [38][39].

Core Insights - Commercial banks are actively recruiting summer interns for 2025, targeting graduates from domestic and international universities for the 2026 class [1][2] - There is a strong demand for technology-related talent, particularly in financial technology and information technology sectors [2][5] - Banks are also focusing on recruiting candidates from engineering and science backgrounds, indicating a trend towards interdisciplinary talent [5][6] Recruitment Trends - Multiple banks, including Industrial Bank and Minsheng Bank, have initiated summer internship recruitment as early as March [1] - The focus on financial technology interns is evident, with positions available in areas such as big data analysis and financial technology project development [2][3] - Shanghai Bank has categorized its internship positions into business and technology sectors, highlighting the importance of data analysis and application development roles [2] Specialized Programs - Hangzhou Bank has launched its "Star Picking Plan" for summer interns, emphasizing roles in artificial intelligence and data research [3][4] - Shanghai Rural Commercial Bank has created a specialized recruitment channel for candidates with backgrounds in engineering, agriculture, and medicine [5] - The trend of seeking interdisciplinary talent is reinforced by banks like Industrial Bank, which prioritize candidates with diverse educational backgrounds [6] Green Finance Focus - Banks are increasingly prioritizing the recruitment of green finance talent, aligning with their strategic goals in sustainable finance [7][8] - Interns in green finance roles will engage in industry analysis and financial service solution development [7] Candidate Requirements - Many banks have set specific requirements for candidates, including good health, strong psychological resilience, and relevant academic backgrounds [8][9] - Language proficiency is also emphasized, with some banks requiring candidates to demonstrate their foreign language skills [8][9] - Interns can expect to gain valuable experience and potential job offers based on their performance during the internship [9]

Core Viewpoint - The article discusses the accelerated redemption of bank convertible bonds, particularly focusing on Hangzhou Bank's recent announcement of early redemption for its convertible bond due to strong stock performance, which is expected to lead to a reduction in the number of outstanding bank convertible bonds in the market [1][3][4]. Group 1: Bank Convertible Bonds Redemption - Hangzhou Bank has announced the early redemption of its "Hangyin Convertible Bond" after triggering the conditional redemption clause, marking it as the third bank convertible bond to be redeemed this year [1][3]. - The strong performance of bank stocks has led to the expectation that more convertible bonds will be redeemed, with projections indicating that by 2025, six bank convertible bonds may exit the market, reducing the total to seven outstanding bonds [1][5]. - The rapid reduction in bank convertible bonds is expected to exacerbate the scarcity and supply-demand imbalance in the market, particularly for high-rated convertible bonds [1][5]. Group 2: Stock Performance and Redemption Triggers - The stock price of Hangzhou Bank has consistently exceeded the redemption trigger price, with a notable increase of over 6% from April 29 to May 26, and a further rise to 16.42 yuan per share by May 28 [3][4]. - The article highlights that the strong performance of the banking sector, supported by high dividends and market risk aversion, has contributed to the increase in stock prices, with the China Securities Bank Index rising over 7% [3][4]. Group 3: Impact on Capital and Conversion Rates - The article notes that convertible bonds serve as an important external channel for banks to supplement their core Tier 1 capital, but historically, low stock prices and high conversion premiums have led to low conversion rates [7][8]. - With rising stock prices, the conversion rates of bank convertible bonds are expected to improve, as evidenced by previous cases where bonds triggered mandatory redemption saw conversion rates exceeding 99% [8]. - The unconverted balance of Hangzhou Bank's convertible bond has significantly decreased from 136 billion yuan at the beginning of the year to below 28 billion yuan, indicating a strong trend towards conversion [8][9].

Core Viewpoint - The rapid redemption of bank convertible bonds is driven by the strong performance of underlying bank stocks, leading to a decrease in the number of outstanding convertible bonds in the market [1][2][4]. Group 1: Bank Convertible Bonds Redemption - Hangzhou Bank announced the early redemption of "Hangyin Convertible Bonds" due to triggering conditional redemption clauses, marking it as the third bank convertible bond to undergo forced redemption this year [2][3]. - As of May 26, 2025, Hangzhou Bank's stock price had closed above 130% of the bond's conversion price for 15 trading days, triggering the redemption [2][3]. - The number of outstanding bank convertible bonds is expected to decrease from 10 to 7 by the end of the year, with several bonds nearing redemption conditions [4]. Group 2: Market Dynamics and Trends - The strong performance of the banking sector, supported by high dividends and market risk aversion, has led to a rise in the China Securities Bank Index by over 7% this year [2][4]. - The scarcity of large convertible bonds is expected to increase due to the accelerated redemption process and the lack of new issuances in 2023 [4][5]. - Institutional reports indicate that the supply-demand imbalance for large convertible bonds will become more pronounced, with the total outstanding amount potentially decreasing from 170 billion to around 100 billion [4][5]. Group 3: Conversion Rates and Capital Supplementation - Historically, the conversion rates of bank convertible bonds have been low due to factors such as depressed stock prices and high conversion premiums [5][6]. - However, with rising stock prices, conversion rates are expected to improve, as evidenced by previous forced redemptions where conversion rates exceeded 99% [6]. - As of May 28, the unconverted balance of Hangyin Convertible Bonds has decreased significantly, indicating a trend towards higher conversion rates [6].