Group 1 - Nanjing Bank's convertible bond "Nan Yin Convertible Bond" may meet redemption conditions as its stock price has been above the conversion price threshold for a significant number of trading days [1] - The stock price of Nanjing Bank was reported at 11.29 yuan per share as of June 6, indicating a high likelihood of triggering the strong redemption clause [1] - If triggered, this will mark the third bank convertible bond to reach strong redemption this year [1] Group 2 - Nanjing Bank issued 200 billion yuan of convertible bonds on June 15, 2021, with a six-year term and a tiered interest rate structure [2] - Hangzhou Bank also announced early redemption of its "Hang Yin Convertible Bond" due to its stock price meeting the necessary criteria [2][3] - The first bank convertible bond to trigger strong redemption this year was Suzhou Bank's "Su Hang Convertible Bond," which was redeemed on January 21, 2025 [4] Group 3 - The market for bank convertible bonds is shrinking, with only 10 remaining in circulation, and further reductions expected as bonds approach maturity [7] - The current market size of bank convertible bonds is approximately 200 billion yuan, accounting for 27% of the total convertible bond market [7] - The trend indicates a potential scarcity of high-quality convertible bonds, which may lead to increased valuations for remaining bonds [7][8] Group 4 - The demand for bank convertible bonds remains strong due to their high credit ratings and liquidity, despite a lack of new issuances since 2023 [8] - There is a notable increase in banks' willingness to convert bonds into equity, although many existing bonds still have low conversion rates [8]

Core Insights - Chongqing Bank successfully issued the first bank technology innovation bond in the western region, with a scale of 3 billion yuan and a subscription multiple of 3.39 times, marking the lowest coupon rate in the bank's history at 1.85% [2] - Since the launch of the "technology board" on May 7, over 200 technology innovation bonds have been issued, totaling more than 380 billion yuan, with banks being the main issuers [2][3] - The issuance of technology innovation bonds has expanded the range of financing entities, primarily supporting financial institutions, technology enterprises, and private equity investment institutions [3] Summary by Category Issuance Details - The technology innovation bond market has seen significant participation from major banks, with the top five state-owned banks issuing a total of 1.1 billion yuan in bonds [3] - Among national joint-stock banks, several banks have issued bonds ranging from 50 million to 150 million yuan, totaling 450 million yuan [4] - The average financing cost of technology innovation bonds is lower than that of similar bonds due to the high qualifications of the issuers [4] Investor Participation - Investors in technology innovation bonds primarily include commercial banks and wealth management companies, with significant investments directed towards sectors like integrated circuits and high-end manufacturing [6] - The current investor base is characterized by a low risk appetite, with a need for diversification in the future [6][7] Policy and Market Outlook - Regulatory bodies are working to improve the support mechanisms for technology innovation bonds, encouraging various financial institutions and long-term funds to participate [7] - Future developments may include an expansion of the market size, broadening of issuer categories, and the creation of technology innovation bond index funds [8]

证券研究报告 南京银行 (601009 CH) 2025 年中期策略会速递— 业绩稳健增长，转债强赎可期 | 华泰研究 | | | 更新报告 | | --- | --- | --- | --- | | 2025 年 | 6 月 | 05 日│中国内地 | 区域性银行 | 6 月 4 日南京银行出席我们组织的 2025 年中期策略会，核心要点包括：1） 预计全年信贷同比多增，但零售需求与风险改善趋势仍待观察；2）存款迎 重定价高峰，负债成本持续优化；3）转债转股可期，夯实公司资本。 信贷有力投放，资产质量稳健 南京银行 24 年/25Q1 贷款同比+14.3%/+14.7%，新增贷款 1573/897 亿元。 Q1 信贷有力投放，为全年奠定较好基础，公司预计能够顺利完成目标，实 现同比多增。年初以来零售投放回暖，主要系按揭增势较好。消费贷方面， 南银法巴在两年快速增长后逐步进入稳定期，平台贷款方面更加谨慎，今年 整体会在管控风险的前提下进行零售投放安排。资产质量表现看，公司不良 走势平稳，25Q1 不良率环比持平至 0.83%。零售不良生成短期或仍有波动， 但随存量不良出清，更多核销资源向零售倾斜，25Q1 零 ...

证券研究报告 南京银行 (601009 CH) 2025 年中期策略会速递— 业绩稳健增长，转债强赎可期 | 华泰研究 | | | 更新报告 | | --- | --- | --- | --- | | 2025 年 | 6 月 | 05 日│中国内地 | 区域性银行 | 6 月 4 日南京银行出席我们组织的 2025 年中期策略会，核心要点包括：1） 预计全年信贷同比多增，但零售需求与风险改善趋势仍待观察；2）存款迎 重定价高峰，负债成本持续优化；3）转债转股可期，夯实公司资本。 信贷有力投放，资产质量稳健 南京银行 24 年/25Q1 贷款同比+14.3%/+14.7%，新增贷款 1573/897 亿元。 Q1 信贷有力投放，为全年奠定较好基础，公司预计能够顺利完成目标，实 现同比多增。年初以来零售投放回暖，主要系按揭增势较好。消费贷方面， 南银法巴在两年快速增长后逐步进入稳定期，平台贷款方面更加谨慎，今年 整体会在管控风险的前提下进行零售投放安排。资产质量表现看，公司不良 走势平稳，25Q1 不良率环比持平至 0.83%。零售不良生成短期或仍有波动， 但随存量不良出清，更多核销资源向零售倾斜，25Q1 零 ...

Market Overview - On June 3, the Shanghai Composite Index rose by 0.43%, the CSI 300 increased by 0.31%, the STAR 50 gained 0.48%, the CSI 1000 was up by 0.72%, the ChiNext Index rose by 0.48%, and the Hang Seng Index increased by 1.53% [4] - The best-performing sectors on June 3 were Beauty Care (+3.86%), Textile and Apparel (+2.53%), Comprehensive (+2.02%), Banking (+1.98%), and Agriculture, Forestry, Animal Husbandry, and Fishery (+1.8%). The worst-performing sectors were Home Appliances (-2.1%), Steel (-1.37%), Coal (-0.84%), Building Materials (-0.52%), and Environmental Protection (-0.4%) [4] - The total trading volume of the A-share market on June 3 was 11,638.3 billion yuan, with a net inflow of 3.905 billion Hong Kong dollars from southbound funds [4] Important Recommendations Company: Nanjing Bank (601009) - The recommendation logic for Nanjing Bank is based on improved operational momentum, high cost-effectiveness in dividend valuation, and the potential for convertible bonds to enhance growth, with expectations for valuation to return to the top tier of city commercial banks [5] - The bank's performance is expected to show a positive U-shaped trend in 2025, driven by optimized management and improved profitability in both corporate and retail sectors [5] - The target price is set at 15.70 yuan per share, corresponding to a 2025 PB of 1.00 times, indicating a potential upside of 37% [6] Company: Rijing Electronics (603286) - Rijing Electronics has transitioned from motorcycle wiring harnesses to intelligent automotive components, leveraging nearly 30 years of experience [7] - The company is expected to continue upgrading its products, moving from resistive to magnetoelectric solutions, and is building a multi-modal electronic skin product matrix [8] - Revenue projections for 2025-2027 are 1,199.28 million yuan, 1,496.20 million yuan, and 1,881.04 million yuan, with growth rates of 23.55%, 24.76%, and 25.72% respectively [8]

Core Viewpoint - The A-share banking sector has seen significant stock price increases, with several banks reaching new highs, indicating strong market performance and investor interest in bank stocks [1][3]. Group 1: Stock Performance - On June 3, the banking sector led the market with notable gains, including Shanghai Rural Commercial Bank reaching a price of 9.86 yuan per share, a 10.04% increase, marking a three-year high [1]. - The overall market saw the Shanghai Composite Index rise by 0.43%, with the banking index showing a substantial upward trend since the end of 2023, moving from a low of 2841.87 to over 4200 points [3]. - The influx of new capital from insurance funds, ETFs, and foreign investments has contributed to the upward momentum in bank stocks, as these investments favor the stable returns and high dividend yields offered by banks [4]. Group 2: Convertible Bonds - The rise in bank stock prices has led to an increase in warnings regarding convertible bonds, indicating a higher likelihood of conversion, which is beneficial for banks as it reduces financing costs and bolsters core Tier 1 capital ratios [1]. - Several banks, including Nanjing Bank and Hangzhou Bank, have issued announcements regarding the potential redemption of their convertible bonds, reflecting a trend of accelerating bond redemptions this year compared to the previous year [5][6]. - The scarcity of bank convertible bonds is becoming evident, with the total outstanding amount potentially decreasing from 170 billion yuan to around 100 billion yuan due to upcoming redemptions [7]. Group 3: Market Dynamics - The demand for bank convertible bonds remains strong among bond investors, driven by their defensive characteristics and the potential for absolute returns in a favorable market environment [8]. - The current market conditions suggest that if macroeconomic factors do not meet expectations, the performance of dividend stocks may improve, further enhancing the appeal of bank convertible bonds [8].

Investment Rating - The industry investment rating is "Positive" and maintained [8] Core Insights - As of the week ending May 30, the banking index has increased by 0.1%, outperforming the CSI 300 index by 1.2% and the ChiNext index by 1.5%. The market's focus on bank stocks has notably increased due to active fund allocation, with a continued upward trend in the sector, particularly for city commercial banks with relatively strong performance [3][14] - The growth rate of real estate loans has turned positive for the first time since the end of Q3 2023, with a year-on-year increase of 0.04% as of the end of March, primarily driven by a recovery in mortgage demand. In Q1, new personal housing loans amounted to 2,144 billion, a year-on-year increase of 2,093 billion, mainly due to a rebound in second-hand housing sales and improved early repayments [4][30] - Recently, the inclusion of Chongqing Rural Commercial Bank and Shanghai Rural Commercial Bank into the CSI 300 index is expected to attract more index funds, providing a positive outlook for these constituent stocks [5][44] - The focus on convertible bond banks is increasing, with significant valuation recovery and trading opportunities. Hangzhou Bank's stock price has risen significantly after triggering the strong redemption clause for its convertible bonds, indicating high investor confidence [6][44] Summary by Sections Banking Sector Performance - The banking index has shown a cumulative increase of 0.1% as of May 30, outperforming the CSI 300 index by 1.2% and the ChiNext index by 1.5% [3][14] - Individual stocks such as Hangzhou Bank have led the gains, with its stock price reaching a new high after the convertible bond triggered strong redemption conditions [3][14] Loan Trends - The growth rate of real estate loans has turned positive, with a year-on-year increase of 0.04% as of the end of March, driven by a recovery in mortgage demand [4][30] - In Q1, new personal housing loans totaled 2,144 billion, a year-on-year increase of 2,093 billion, attributed to improved second-hand housing sales and early repayments [4][30] Index Adjustments - Chongqing Rural Commercial Bank and Shanghai Rural Commercial Bank have been included in the CSI 300 index, effective June 13, 2025, which is expected to lead to increased capital inflow into these stocks [5][44] Convertible Bonds - The focus on banks issuing convertible bonds has intensified, with Hangzhou Bank's stock price showing significant gains after the strong redemption clause was triggered [6][44]

Core Points - The city has issued a total of 7.68 million third-generation social security cards, enhancing convenience and benefits for citizens [2] - The social security card has been integrated into various sectors, including healthcare, transportation, and cultural tourism, allowing for seamless services [3] - Future plans include leveraging AI and big data to analyze cardholder preferences and enhance personalized services [4] Group 1: Social Security Card Issuance - The third-generation social security card was first issued in January 2021, with ongoing efforts to promote its use and benefits [2] - A total of 7.68 million cards have been issued, with 9.35 million instances of "one card for all" services across various sectors [2] Group 2: Service Integration - The social security card can be used for direct settlement in all connected hospitals and pharmacies, with 76 hospitals offering work-related injury settlements [3] - Public transportation, including buses, taxis, and shared bicycles, accepts the social security card, providing discounts for specific groups [3] - Over 50 cultural and tourism sites allow entry using the social security card, facilitating easy access to recreational activities [3] Group 3: Future Developments - The city plans to strengthen cooperation with financial institutions to enhance social security card services [4] - There is a focus on utilizing new technologies to analyze user preferences and improve data security management [4] - The goal is to increase the "convenience index" for cardholders, thereby enhancing their overall satisfaction [4]

Investment Rating - The investment rating for the banking industry is "Positive" and maintained [11] Core Insights - The banking index increased by 0.1% as of May 30, 2025, outperforming the CSI 300 index by 1.2% and the ChiNext index by 1.5%. The market's focus on bank stocks has increased significantly due to active fund allocation, with a continued upward trend in the sector, particularly for city commercial banks with relatively strong performance [2][6][19] - The growth rate of real estate loans turned positive for the first time since Q3 2023, with a year-on-year increase of 0.04% as of the end of March. This was primarily driven by a recovery in mortgage demand, with new personal housing loans amounting to 2,144 billion, a year-on-year increase of 2,093 billion [7][34][40] - The inclusion of Chongqing Rural Commercial Bank and Shanghai Rural Commercial Bank into the CSI 300 index is expected to attract more index funds, providing a positive outlook for these constituent stocks [8][47] Summary by Sections Market Performance - As of May 30, 2025, the banking index has shown a cumulative increase of 0.1%, with significant gains in city commercial banks like Hangzhou Bank, which saw its stock price rise after triggering a strong redemption condition for its convertible bonds [2][6][19] Loan Trends - In Q1 2025, the growth of corporate medium and long-term loans decreased, with industrial loans adding 1.52 trillion, down 140 billion year-on-year, and service sector loans adding 2.99 trillion, down 550 billion year-on-year. However, personal housing loans saw a significant increase, indicating a recovery in the housing market [7][34][40] Index Adjustments - The adjustment of the CSI 300 index, which includes Chongqing Rural Commercial Bank and Shanghai Rural Commercial Bank, is expected to lead to increased capital inflow into these stocks, enhancing their market performance [8][47] Convertible Bonds - The recent surge in bank stocks has narrowed the price gap to the strong redemption price for banks issuing convertible bonds. Hangzhou Bank's stock price has remained above the strong redemption price for 15 consecutive trading days, indicating strong investor confidence [9][48]

Core Viewpoint - The article discusses the recent trend of bank convertible bonds triggering early redemption conditions due to the strong performance of bank stocks, leading to a reduction in the supply of these bonds in the market [2][10]. Group 1: Bank Convertible Bonds - Nanjing Bank's stock price has remained above 130% of the conversion price for several trading days, indicating that its convertible bond is about to trigger early redemption conditions [2][4]. - Other bank convertible bonds, such as Chengdu Bank and Suzhou Bank, have already exited the market due to similar conditions, with Nanjing Bank potentially becoming the fourth this year to do so [2][10]. - The strong performance of bank stocks is expected to alleviate the repayment pressure on convertible bonds and enhance core Tier 1 capital [2][10]. Group 2: Market Dynamics - As of May 29, the unconverted balance of Nanjing Bank's convertible bonds was 6.402 billion, representing 32.01% of the total bonds [8]. - The exit methods for convertible bonds include conversion, redemption, and maturity payment, with a strong inclination towards conversion due to the need for core Tier 1 capital [8][10]. - The article notes that the supply of large-cap bank convertible bonds is becoming scarce, which may lead to increased demand and potential price appreciation [11]. Group 3: Historical Context - Historically, bank convertible bonds have struggled to meet early redemption conditions due to low stock prices, but recent strong performance has changed this dynamic [10]. - The issuance of convertible bonds by banks is primarily aimed at low-cost financing and enhancing capital adequacy through conversion [10][11]. - The article highlights that the total outstanding bank convertible bonds may decrease from approximately 170 billion to around 100 billion, further emphasizing their scarcity [11].