Core Viewpoint - Several small and medium-sized banks have lowered their five-year fixed deposit rates to below those of state-owned banks, reflecting pressure on their liability side and a shift in deposit strategies [1][2]. Group 1: Deposit Rate Adjustments - Starting June 5, 2023, Guangzhou Huadu Chouzhou Village Bank reduced its five-year fixed deposit rate to 1.2%, aligning it with the six-month deposit rate [1]. - Beijing Huairou Rongxing Village Bank also lowered its five-year fixed deposit rate to 1.2% as of June 1, 2023, with one-year, two-year, and three-year rates adjusted to 1.35%, 1.2%, and 1.2% respectively [1]. - City commercial banks, including Beijing Bank, Shanghai Bank, Nanjing Bank, and Changsha Bank, have also reduced their deposit rates to below 1.5% for various terms [2]. Group 2: Market Dynamics - The recent adjustments in deposit rates indicate that small and medium-sized banks are facing increased pressure on their liability side, leading to a need for strategic changes [2]. - The trend of declining short-term deposit rates has resulted in longer deposit terms for residents, which has further increased the cost of liabilities for small and medium-sized banks [2]. - The downward trend of large banks in the market has put significant pressure on the asset side of small and medium-sized banks, prompting them to adjust their liability structures to enhance competitiveness [2].

Core Viewpoint - The central financial work conference emphasizes the development of five key areas in finance: technology finance, green finance, inclusive finance, pension finance, and digital finance, with a focus on enhancing support for key sectors such as technological innovation and green transformation [1][2] Group 1: Pension Finance Development - By the end of 2024, Postal Savings Bank and Industrial and Commercial Bank of China (ICBC) each served over 200 million elderly clients [3][4] - The personal pension system has been fully implemented, leading to a rapid increase in personal pension account openings at several listed banks, with ICBC, Bank of Communications, and CITIC Bank seeing their account numbers double [1][7] - As of the end of 2024, China Bank and China Merchants Bank each had over 10 million personal pension accounts [1][7] Group 2: Growth in Personal Pension Accounts - A total of 12 listed banks reported significant growth in personal pension accounts, with China Bank and China Merchants Bank each exceeding 10 million accounts [7][8] - CITIC Bank reported a 136.04% increase in personal pension accounts compared to the previous year, while Industrial Bank saw a 47.67% increase [10][8] - The personal pension account numbers for Beijing Bank and Shanghai Bank surpassed 170,000 and 159,530 respectively by the end of 2024 [7][8] Group 3: Diversification of Pension Financial Products - The National Financial Regulatory Administration has issued guidelines to enhance the quality of pension finance, encouraging banks to diversify their product offerings and improve service adaptability [11][12] - China Bank has launched 262 personal pension products, covering various financial instruments, positioning itself as a leader in product variety [11] - Agricultural Bank of China is focused on enhancing the coverage and quality of its pension financial services, while CITIC Bank has developed a comprehensive pension financial product and service system [12]

Core Viewpoint - Nanjing Bank has announced the early redemption of its convertible bond, Nan Yin Convertible Bond, due to the triggering of conditional redemption clauses, reflecting a strong performance in the banking sector and a trend of multiple banks' convertible bonds being redeemed early [1][3][4]. Group 1: Convertible Bonds Redemption - Nanjing Bank's stock price has been above 130% of the conversion price of 8.22 CNY per share for 15 out of 19 trading days, leading to the decision to exercise the early redemption right [3]. - Other banks, including Suzhou Bank and Hangzhou Bank, have also seen their convertible bonds trigger early redemption this year, indicating a broader trend in the banking sector [2][4]. - The Hangzhou Bank's convertible bond was also recently announced for early redemption, with its stock price exceeding 130% of the conversion price of 11.35 CNY per share [4]. Group 2: Market Supply and Demand - The market is currently facing a short-term supply shortage of bank convertible bonds, as no new bank convertible bonds have been issued recently, leading to potential price increases for existing bonds [4]. - As of now, there are 10 bank convertible bonds in the market, with the Shanghai Pudong Development Bank's bond set to mature on October 28, 2025, with an issuance scale of 50 billion CNY [4]. Group 3: Banking Sector Performance - The banking sector has shown strong performance, with multiple bank stocks reaching new highs, contributing to the favorable conditions for convertible bond redemptions [5]. - Analysts remain optimistic about the absolute value of bank stocks, citing historical stability in returns during the traditional dividend distribution period in June and July [6]. - Long-term policies aimed at stabilizing the economy and promoting consumption are expected to benefit the banking sector, with continued demand from institutional investors [6].

Investment Rating - The report maintains a "Positive" outlook for the banking industry in China as of June 11, 2025 [4] Core Insights - The banking sector is experiencing a transition from a surplus of deposits to a structural shortage, with significant differentiation between state-owned banks and smaller banks [8][27] - Recent adjustments in deposit rates are expected to stabilize the deposit base of large banks, despite ongoing deposit disintermediation [36][45] - The report highlights three main investment themes: convertible bonds with rebound potential, high-dividend stocks, and banks with long-term liabilities and capital advantages [40] Summary by Sections 1. Review of Deposit Growth: From Surplus to Shortage - Since 2009, deposit growth has lagged behind loan growth, indicating a shift in liquidity conditions from surplus to structural shortage [12][14] - The transition is attributed to changes in monetary policy and the rise of wealth management products, which have contributed to deposit disintermediation [19][22] 2. New Characteristics of Deposit Growth in 2025: From Industry-wide to Structural Shortage - The overall deposit gap in the banking sector has shown signs of improvement, but state-owned banks continue to face significant deposit shortages [27][28] - In Q1 2025, the deposit growth rate for large banks was only 71%, down from an average of 80% since 2019, indicating a potential arbitrage chain where entities take low-interest loans from large banks and deposit them in smaller banks for higher interest [32][34] 3. New Round of Deposit Rate Adjustments and Stability of Large Banks' Liabilities - The report expresses cautious optimism regarding the current round of deposit disintermediation, noting that past adjustments have had diminishing impacts over time [36][38] - Large banks are expected to maintain deposit stability due to regulatory constraints and the rapid adjustment of deposit rates by smaller banks [45] 4. Investment Recommendations - The report identifies three key investment lines: 1. Convertible bonds with rebound potential, specifically targeting Hangzhou Bank and Nanjing Bank [40] 2. High-dividend stocks, with a focus on CITIC Bank, Industrial Bank, and Jiangsu Bank [40] 3. Banks with long-term liabilities and capital advantages, such as Chongqing Rural Commercial Bank [40]

Investment Rating - The investment rating for Bank of Nanjing is maintained at BUY with a target price of RMB 13.29, indicating a potential upside of 17% from the closing price of RMB 11.35 as of 9 June 2025 [1][6]. Core Insights - The conditional redemption clause of the convertible bonds (CBs) has been triggered, which is expected to enhance the capital strength of Bank of Nanjing and support further business expansion [2]. - The unconverted balance of the CBs is approximately RMB 5.2 billion, accounting for about 4% of the company's total market capitalization, suggesting limited share-capital dilution while maintaining a solid dividend profile and growth potential [3]. - Bank of Nanjing has demonstrated steady earnings growth, with a year-on-year increase in revenue and net profit of 6.5% and 7.1% respectively in 1Q25, outperforming peers [4]. Financial Performance - Revenue is projected to grow from RMB 45,160 million in 2023 to RMB 61,209 million by 2027, with a compound annual growth rate (CAGR) of approximately 7.27% [12]. - Net profit attributed to the parent is expected to increase from RMB 18,502 million in 2023 to RMB 26,113 million in 2027, reflecting a steady growth trajectory [12]. - The estimated dividend yield for 2025 is 5.02%, which remains attractive even after accounting for potential dilution from the CB conversion [3][12]. Valuation Metrics - The forecasted earnings per share (EPS) for 2025 is RMB 1.86, with a price-to-earnings (PE) ratio of 6.10x, indicating a favorable valuation compared to peers [10][12]. - The book value per share (BVPS) is estimated at RMB 14.77 for 2025, with a price-to-book (PB) ratio of 0.77x, suggesting that the stock is undervalued relative to its intrinsic value [10][12]. - The core capital adequacy ratio is expected to improve by 0.57 percentage points to 9.46% following the full conversion of the CBs, enhancing the bank's capital position [2].

Core Viewpoint - The recent announcement by Nanjing Bank regarding the early redemption of its convertible bonds indicates a trend in the banking sector where multiple banks are triggering conditional redemption clauses due to rising stock prices [1][2][5]. Group 1: Convertible Bonds Redemption - Nanjing Bank's "Nan Yin Convertible Bonds" have triggered the conditional redemption clause, leading to the decision for early redemption [1][2]. - The stock price of Nanjing Bank has been above 130% of the conversion price for 15 out of 19 trading days, which meets the criteria for redemption [2]. - Other banks, including Suzhou Bank and Hangzhou Bank, have also seen their convertible bonds trigger similar redemption clauses this year [4]. Group 2: Market Trends and Predictions - The banking sector has experienced a significant upward trend, contributing to the triggering of early redemptions for several convertible bonds [5][6]. - As of June 10, various bank stocks, including Jiangsu Bank and Nanjing Bank, reached new highs, indicating strong market performance [6][7]. - Analysts predict that the market may face a supply-demand imbalance for convertible bonds due to the lack of new issuances, potentially leading to price increases for existing bonds [4]. Group 3: Future Outlook for Banking Stocks - Institutions remain optimistic about the absolute value of banking stocks, especially during the traditional dividend distribution period in June and July [8]. - Historical data shows that the banking sector has had positive absolute and relative returns during this period in many years [8]. - The implementation of expansionary policies aimed at stabilizing the economy is expected to benefit the banking sector in the medium to long term [8].

| 证券代码：601009 | | 证券简称：南京银行 | 公告编号：2025-023 | | --- | --- | --- | --- | | 优先股简称：南银优 1 | | | 优先股代码：360019 | | 2 | 南银优 | | 360024 | | 可转债简称：南银转债 | | | 可转债代码：113050 | 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： 证券停复牌情况：适用 | 证券代码 | 证券简称 | 停复牌类型 | 停牌起始日 | 停牌 期间 | 停牌终止日 | 复牌日 | | --- | --- | --- | --- | --- | --- | --- | | 113050 | 南银转债 | 可转债转股停 | 2025/6/16 | | | | | | | 牌 | | | | | 南京银行股份有限公司 关于实施 2024 年度权益分派时"南银转债" 转股连续停牌的提示性公告 因公司实施 2024 年度权益分派,公司的相关证券停复牌情况如下：自本次普 通股权益分派实施公告前一交易日（ ...

Core Viewpoint - The banking sector continues to show resilience and strength, with many bank stocks reaching new highs despite broader market adjustments, driven by high dividend yields and institutional investment interest [1][2][4]. Group 1: Bank Stock Performance - On June 10, bank stocks performed strongly, with the China Securities Bank Index reaching a high of 7916.59 points before closing up 0.49% [1][2]. - A total of 39 out of 42 bank stocks rose, with notable gains from Minsheng Bank and Zheshang Bank, which increased by 2.83% and 2.14%, respectively [2]. - The banking sector has shown a year-to-date performance ranking among the top four industries, with 21 bank stocks rising over 10% and 7 over 20% [2]. Group 2: Dividend Strategies - The median dividend yield for banks remains attractive at over 4%, with many banks announcing earlier dividend distributions compared to previous years [3]. - As of now, 17 banks have announced their year-end dividend plans, with 12 already implemented [3]. - The traditional dividend distribution period in June and July is expected to have a stable overall performance, with historical data showing positive absolute and relative returns during this period [3][4]. Group 3: Convertible Bonds - The rise in bank stock prices has led to an acceleration in the exit of bank convertible bonds from the market, with Nanjing Bank's convertible bond triggering mandatory redemption conditions [1][6]. - Nanjing Bank's convertible bond, with a total amount of 20 billion yuan, has seen its conversion rate increase from approximately 47.6% to over 75% [8]. - The overall market for bank convertible bonds is expected to shrink significantly, with predictions indicating a reduction from 1.7 billion yuan to around 1 billion yuan due to several bonds triggering early redemption [8].

| 证券代码：601009 | | 证券简称：南京银行 | 公告编号：2025-023 | | --- | --- | --- | --- | | 优先股简称：南银优 1 | | | 优先股代码：360019 | | 2 | 南银优 | | 360024 | | 可转债简称：南银转债 | | | 可转债代码：113050 | 南京银行股份有限公司 关于实施 2024 年度权益分派时"南银转债" 转股连续停牌的提示性公告 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： 证券停复牌情况：适用 因公司实施 2024 年度权益分派,公司的相关证券停复牌情况如下：自本次普 通股权益分派实施公告前一交易日（2025 年 6 月 16 日）至权益分派股权登记日期 间，"南银转债"将停止转股；本次权益分派股权登记日后的第一个交易日，"南 银转债"恢复转股。欲享受公司本次权益分派的"南银转债"持有人可于 2025 年 6 月 13 日（含当日）前转股。 | 证券代码 | 证券简称 | 停复牌类型 | 停牌起始日 | 停牌 期间 ...

Market Overview - A-shares and Hong Kong stocks experienced a decline in the afternoon, with the ChiNext Index and STAR 50 Index dropping over 1% [1] - The Shanghai Composite Index closed down 0.44% at 3384.82 points, while the Shenzhen Component Index fell 0.86% to 10162.18 points [1] - The total trading volume in the Shanghai and Shenzhen markets reached 145.16 billion yuan, an increase of nearly 140 billion yuan compared to the previous day [1] Banking Sector Performance - The banking sector showed strength, with Minsheng Bank rising nearly 3% and reaching a peak increase of about 4% during trading [4] - Other banks such as Zhejiang Commercial Bank and Xi'an Bank also saw gains of approximately 2% [4] - Recent announcements of dividend distributions by several banks have led to a more favorable outlook for the sector, with historical data indicating stable performance during the traditional dividend period of June to July [6] Departure Tax Refund Concept - The departure tax refund concept surged, with China National Aviation rising by 30% and several other companies hitting their daily limit [8] - The State Administration of Taxation reported a 116% year-on-year increase in the number of departure tax refunds processed in the first month of the new policy [10] - The potential market space for departure tax refunds is estimated to be nearly 100 billion yuan, which could further stimulate consumption and expand domestic demand [10] Agricultural Sector Activity - The agricultural sector saw significant activity, particularly in seed companies, with Qiu Le Seed Industry rising approximately 12% and Kangnong Seed Industry increasing over 10% [12] - The Ministry of Agriculture has initiated inspections of seed production bases to ensure the safety and quality of agricultural seeds, which is expected to enhance market order and industry standards [14]