Core Viewpoint - Inclusive finance is playing a crucial role in supporting China's economic microcirculation, enhancing the financing experience for small and micro enterprises, and promoting common prosperity during the "14th Five-Year Plan" period [1][4]. Group 1: Development of Inclusive Finance - During the "14th Five-Year Plan," inclusive finance has achieved historic breakthroughs, with the balance of inclusive loans for small and micro enterprises reaching 36 trillion yuan, 2.3 times that of the end of the "13th Five-Year Plan," and interest rates decreasing by 2 percentage points [1][4]. - By June 2025, the balance of inclusive loans for small and micro enterprises from large commercial banks is projected to reach 16.23 trillion yuan, 3.36 times that of the end of the "13th Five-Year Plan," with an average annual growth rate of approximately 30% [3][4]. Group 2: Enhanced Accessibility and Service Quality - Financial institutions are actively addressing the financing difficulties faced by small and micro enterprises, with the average annual growth rate of inclusive loans reaching about 20% and the average annual growth rate of inclusive agricultural loans at 14.6% during the "14th Five-Year Plan" [4][6]. - The establishment of financial service stations in rural areas has significantly improved access to financial services, with over 98% coverage of rural banking outlets [5][6]. Group 3: Innovation and Technology in Financial Services - Financial institutions are leveraging technology to enhance service efficiency, with some loans being processed in seconds through the use of big data and artificial intelligence [6][8]. - The introduction of diverse financial products and services, such as flexible credit options and innovative service models, has improved the financing experience for small and micro enterprises [3][6]. Group 4: Sustainable Financial Ecosystem - The financial management departments are focusing on creating a sustainable financial service ecosystem by enhancing risk assessment, innovating credit products, and establishing a long-term service mechanism for small and micro enterprises [7][8]. - The average interest rate for newly issued inclusive loans for small and micro enterprises decreased by 2 percentage points compared to the end of the "13th Five-Year Plan," alleviating the financial burden on these enterprises [8].

Core Viewpoint - Inclusive finance is playing a crucial role in supporting China's economic micro-circulation, enhancing the financing experience for small and micro enterprises, and contributing to high-quality economic development during the "14th Five-Year Plan" period [1][2][3]. Group 1: Development of Inclusive Finance - During the "14th Five-Year Plan," inclusive finance has achieved significant progress, with the balance of loans to inclusive small and micro enterprises reaching 36 trillion yuan, 2.3 times that of the end of the "13th Five-Year Plan," and interest rates decreasing by 2 percentage points [1][2]. - Large commercial banks have increased their inclusive small and micro enterprise loan balance to 16.23 trillion yuan by June 2025, which is 3.36 times that of the end of the "13th Five-Year Plan," with an average annual growth rate of about 30% [2]. - The balance of inclusive loans for small and micro enterprises is growing rapidly, with an average annual increase of approximately 20%, reaching 2.36 times that of the end of the "13th Five-Year Plan" [3]. Group 2: Financial Services Accessibility - Financial services are increasingly accessible, with banks establishing service stations in rural areas, allowing farmers to obtain loans conveniently [4][5]. - The coverage rate of rural bank branches exceeds 98%, and various financial service points are established in rural areas, ensuring that financial services reach every village [5]. - The use of digital technologies has significantly improved the efficiency of inclusive loan disbursement, enabling some loans to be approved and disbursed almost instantly [6]. Group 3: Sustainable Financial Ecosystem - Financial management departments are enhancing the sustainability of inclusive finance by improving risk assessment and credit technology, and establishing a long-term service mechanism for small and micro enterprises [7][8]. - Policies and institutional innovations are effectively stimulating the internal motivation for the development of inclusive finance within banks, establishing a long-term mechanism for "daring to lend, willing to lend, able to lend, and knowing how to lend" [8]. - The average interest rate for newly issued inclusive loans for small and micro enterprises decreased by 2 percentage points compared to the end of the "13th Five-Year Plan," alleviating the financial burden on these enterprises [8].

Core Viewpoint - The rise in Agricultural Bank of China’s price-to-book (PB) ratio above 1 signifies a shift towards more rational long-term value assessments in the Chinese banking sector, particularly for state-owned banks, reflecting an increasing attractiveness of Chinese assets in the global capital market [1] Group 1: Fundamental Resilience and Valuation Support - The core support for valuation recovery stems from the continuously improving operational fundamentals, with Agricultural Bank reporting a revenue of 369.94 billion yuan and a net profit of 139.51 billion yuan for the first half of 2025, marking year-on-year growth of 0.85% and 2.7% respectively, leading among the four major state-owned banks [2] - The bank's county-level financial strategy has deepened, with county loans exceeding 10 trillion yuan, accounting for 40.9% of domestic loans, creating a competitive barrier and driving performance growth [2] - The increase in Agricultural Bank's PB ratio reflects a regained market confidence in the asset quality of the banking sector, indicating a shift in the perception of state-owned banks from "too big to fail" to "important and indispensable" [2] Group 2: High Dividend Asset Revaluation - In a global low-interest-rate environment, the high dividend yield of quality Chinese assets is becoming a significant advantage for attracting global capital, with Agricultural Bank maintaining an average dividend yield of 5.79% from 2018 to 2024 [4] - The China Securities Bank Index has a PB ratio of 0.71, with a dividend yield of 4.07%, significantly higher than the yield of ten-year government bonds, showcasing its comparative value in global capital markets [4] - International institutions have highlighted the "high dividend sector" as a key allocation focus, reflecting a strong demand for assets that offer both safety margins and yield potential [4] Group 3: Inflow of Incremental Capital - With the release of policy dividends, medium to long-term funds are accelerating towards quality assets, with bank stocks comprising 47.2% of the heavy holdings in insurance assets, indicating strong institutional confidence in high dividend assets [5] - The overall PB ratio of the banking sector has risen from 0.52 at the beginning of 2024 to 0.67, while the total market capitalization of listed banks has increased from 8.85 trillion yuan to 15.48 trillion yuan [5] - Several international investment banks have systematically upgraded their ratings on Chinese bank stocks, reflecting strengthened expectations regarding net interest margin stabilization, asset quality improvement, and profit recovery [5]

Core Insights - The reform of China's rural financial system has entered a new phase, with significant integration efforts by state-owned banks, particularly the Agricultural Bank of China, which has recently been approved to incorporate 192 branches from rural commercial banks and credit cooperatives [2][5][6] Group 1: Integration of Rural Financial Institutions - In the past month, the Agricultural Bank of China has received approval to rename and integrate 192 branches from various rural financial institutions, marking a critical step in enhancing the stability of local financial resources [2][5] - The integration includes branches from banks such as Yanbian Rural Commercial Bank and Jilin Longjing Rural Commercial Bank, which have been renamed to reflect their new affiliation with the Agricultural Bank [3][4] - This consolidation is part of a broader trend where state-owned banks are actively participating in the restructuring of local rural financial systems, with over ten provinces implementing reform plans since 2022 [5][6] Group 2: Role of State-Owned Banks - State-owned banks are transitioning from traditional minority shareholding to deeper integration through full ownership and operational control, which is seen as a core strategy for risk mitigation and system restructuring [6][7] - The "village to branch" model has emerged as a primary method for state-owned banks to engage in the reform of local small banks, allowing for rapid expansion of service networks and stabilization of regional financial order [6][7] - As of mid-2025, the Agricultural Bank of China had 22,900 domestic branches, including various rural banks under its control, indicating a significant expansion of its operational footprint [7] Group 3: Overall Impact on the Banking Sector - Since 2025, over 300 small and medium-sized banks have been dissolved, merged, or deregistered, reflecting a significant contraction in the banking sector [8] - The number of village banks in China has decreased to 1,440 by mid-2025, down by 98 from the end of 2024, highlighting the ongoing consolidation trend within the rural banking landscape [8]

Core Viewpoint - The rise in Agricultural Bank of China's price-to-book (PB) ratio above 1 signifies a shift towards more rational long-term value assessments in the Chinese banking sector, particularly for state-owned banks, reflecting an increase in the attractiveness of Chinese assets in the global capital market [1] Group 1: Fundamental Resilience and Valuation Support - The core support for valuation recovery stems from the continuously improving operating fundamentals, with Agricultural Bank reporting a revenue of 369.937 billion yuan and a net profit of 139.51 billion yuan for the first half of 2025, marking year-on-year increases of 0.85% and 2.7% respectively, leading among the four major state-owned banks [2] - The bank's county-level financial strategy has deepened, with county loans exceeding 10 trillion yuan, accounting for 40.9% of domestic loans, creating a competitive barrier and driving performance growth [2] - The increase in Agricultural Bank's PB ratio reflects a recovery in market confidence regarding the asset quality of the banking sector, indicating a shift in the perception of state-owned banks from "too big to fail" to "important and indispensable" [2] Group 2: High Dividend Asset Revaluation - In a global low-interest-rate environment, the high dividend yield of quality Chinese assets is becoming a significant advantage for attracting global capital, with Agricultural Bank maintaining an average dividend yield of 5.79% from 2018 to 2024 [4] - The China Securities Bank Index has a PB ratio of 0.71, with a dividend yield of 4.07%, significantly higher than the yield on ten-year government bonds, indicating strong allocation value compared to major global capital markets [4] - International institutions have highlighted the "high dividend sector" as a key allocation focus, reflecting a growing demand for assets that balance safety margins and yield potential amid global economic restructuring [4] Group 3: Inflow of Incremental Capital - Policy incentives are accelerating the flow of medium- to long-term capital into quality assets, with bank stocks comprising 47.2% of the heavy holdings in insurance assets, showcasing institutional confidence in high dividend assets [5] - The overall PB ratio of the banking sector has risen from 0.52 at the beginning of 2024 to 0.67, while the total market capitalization of listed banks has increased from 8.85 trillion yuan to 15.48 trillion yuan [5] - Several international investment banks have systematically upgraded their ratings on Chinese bank stocks, indicating strengthened expectations for net interest margin stabilization, asset quality improvement, and profit recovery [5]

■本报记者 王磊 从守护金融安全到支持产业发展，从构建服务场景到优化适老化体验……近年来，农行山西分行积极履 行国有大行责任担当，围绕银发经济全方位发力，持续优化养老金融服务体系，提升养老客群服务质 效，积极探索和推进"接地气、有温度"的养老金融业务发展模式，为银发经济注入了强劲的金融动能。 为产业发展注入强劲动力 山西省朔州市山阴县洪涛山老年颐养家园是一家民办非企业单位，是"全国33家标准化养老试点单位"之 一。该机构相关负责人常宝告诉《农村金融时报》记者，随着当地养老服务需求的攀升，机构现有的养 老条件难以满足发展需要，急需改善环境、引进先进医养设备，提升服务水平。 得知这一情况后，农行山西朔州分行第一时间成立联合服务小组，现场调研了解机构经营情况和融资需 求，为养老院量身定制金融服务方案，并及时为其发放了720万元流动资金贷款，为养老院的升级改造 和持续发展注入了有力的金融动能。 "这笔贷款真是雪中送炭，有了这笔资金，我们就能马上启动宿舍翻新和医疗设备采购计划，让老人们 住得更舒心，看病更方便。"常宝说道。 农行山西分行相关负责人表示，该分行聚焦养老金融的重点领域和关键环节，通过加强政银合作、支持 养老 ...

Core Viewpoint - The Agricultural Bank of China Fujian Branch is transforming its "Huinong Tong" service points into "Huinong Service Flagship Stores" to enhance comprehensive financial services for rural customers, addressing the limitations of basic financial functions and improving loan accessibility and customer satisfaction [1][2]. Group 1: Development of "Huinong Service Flagship Stores" - The Fujian Branch has established over 2,000 "Huinong Tong" service points and is upgrading some to "Huinong Service Flagship Stores" to provide a wider range of financial services beyond basic functions [1]. - The flagship stores will utilize smart tools like intelligent POS machines and mobile services to offer comprehensive financial services, including loan applications, account openings, and pension business appointments [1]. Group 2: Expansion of Agricultural Loans - The branch has supported 380,000 farmers through the Huinong e-loan initiative, creating information profiles for 690,000 farmers across 14,000 administrative villages [1]. - The establishment of flagship stores will provide a stable base for marketing personnel to enhance agricultural loan outreach and improve service efficiency in key towns and industries [1]. Group 3: Online and Offline Integration - The flagship stores will implement digital financial tools to facilitate interaction between online and offline customers, promoting mobile banking usage and online transaction habits [2]. - Activities such as online discounts and loyalty programs will be introduced to encourage online customers to visit physical locations for transactions [2]. Group 4: Financial Policy Education - The flagship stores will feature platforms for promoting financial policies and products through videos and educational materials, enhancing community awareness of financial services [3]. - Collaborative efforts with local governments will be made to conduct financial education sessions and consumer rights protection campaigns [3].

Core Viewpoint - The Agricultural Bank of China Fujian Branch is actively addressing the financial service gaps in rural areas by establishing a new inclusive financial system to support rural revitalization and enhance economic vitality [1][7]. Group 1: Financial Service Innovations - The bank has introduced the "Huinong e-loan" product, allowing farmers to apply for loans conveniently via mobile phones, significantly improving access to credit for smallholders and micro-enterprises [2][3]. - The establishment of "Huinong Service Flagship Stores" aims to provide comprehensive financial services in rural areas, enhancing the efficiency and quality of financial support [3][6]. Group 2: Impact on Local Economies - In Tangyang Village, the tea industry has flourished due to the bank's support, with annual sales reaching over 3 million yuan and benefiting more than 100 local farmers [2][3]. - The flagship stores have facilitated the expansion of the tea production chain, leading to a projected tea output value of 110 million yuan in 2024 [3]. Group 3: Tailored Financial Solutions - The bank has developed specific financial products like "Facility Loans" for fishermen, addressing their unique operational needs and enabling quicker loan processing times [9]. - The establishment of a "Sea Bank" on fishing rafts has brought financial services directly to fishermen, significantly improving their access to credit and financial advice [8][9]. Group 4: Expansion of Services - As of September 2023, the bank has established 88 "Huinong Service Flagship Stores" and facilitated loans totaling 5.7 billion yuan for rural households [7]. - The bank's initiatives are designed to extend financial services deeper into rural areas, ensuring that financial support is accessible and responsive to local needs [6][7].

Investment Rating - The investment rating for the banking sector is "Positive" and is maintained [11] Core Viewpoints - There is still divergence in the market regarding the sustainability of the banking stock market. However, it is believed that valuation recovery will continue. From a strategic perspective, it is essential to view the relationship between banking stocks and market sentiment dialectically. In the medium to long term, undervalued banking stocks align with the market's slow bull direction, as the index has been reaching new highs over the past year. In the short term, the performance of growth stocks benefiting from high-risk preferences may diverge from low-risk banking stocks, which indirectly help stabilize the index [6][38] - The fundamental logic supporting the valuation recovery of banking stocks remains solid. The trend of establishing a bottom line for significant risks in urban investment, real estate, and capital is clear, with policies still supporting urban investment debt and orderly capital replenishment for important banks. Mainstream banks continue to show stable growth in performance, with revenue growth points shifting from investment income to net interest income since 2025. It is expected that more banks will see a reversal in net interest income growth as deposit costs continue to decline in 2026 [6][39] Summary by Sections Market Performance - This week, the banking index rose by 5.0%, outperforming the CSI 300 and ChiNext indices by 7.3% and 10.7%, respectively. The market's risk appetite has decreased since the fourth quarter, but the banking sector has seen significant relative gains due to a valuation recovery [2][8] - Individual stocks such as Chongqing Bank and Yunnan Rural Commercial Bank led the gains, while the stock price of Shanghai Pudong Development Bank showed notable elasticity as its convertible bonds approach maturity [19][21] Trading Dynamics - Each round of adjustment presents opportunities for low-valuation configurations. The mid-term dividend has already started, and the demand for dividend assets from absolute return funds remains unchanged. The pressure from new funds and the maturity of existing non-standard assets will push the dividend yield of banking stocks to continue declining [7][39] - The trading volume and turnover rate of state-owned banks, city commercial banks, and rural commercial banks have decreased compared to last week, but the turnover rate of banking stocks has begun to rise again, indicating a change in market risk appetite [10][31] Convertible Bonds - Attention is drawn to the strong redemption trading opportunities for convertible bonds in the banking sector. As the banking sector rises, the stock prices of convertible bond banks are approaching their strong redemption prices. The recent rebound in the stock price of Shanghai Pudong Development Bank has been driven by active conversions by major shareholders [9][26] Future Outlook - The market remains optimistic about the effectiveness of anti-involution measures and the expected recovery of the PPI next year. If macroeconomic recovery resolves the asset shortage contradiction, the fundamentals of banking stocks will benefit accordingly. Additionally, local state-owned assets and industrial capital continue to have a positive outlook on banking stocks, with frequent increases in holdings by major shareholders and management since the third quarter [7][39]

Core Insights - The Shanghai Composite Index fell by 1.47% this week, with only four sectors experiencing gains, notably the banking and coal industries, which rose by 4.89% and 4.17% respectively [1][2] - The banking sector led the gains, while the electronic and media sectors faced the largest declines, dropping by 7.14% and 6.27% respectively [1][2] Industry Performance - The banking sector saw a net inflow of 24.19 billion yuan, with 41 out of 42 listed banks experiencing price increases. Key performers included Chongqing Bank, Shanghai Pudong Development Bank, and Chongqing Rural Commercial Bank, which rose by 14.19%, 12.50%, and 12.17% respectively [3][4] - In contrast, the electronic industry faced the largest net outflow of funds, totaling 700.79 billion yuan, followed by the power equipment sector with a net outflow of 416.92 billion yuan [1][2] Fund Flow Analysis - Overall, the main funds in the two markets experienced a net outflow of 301.75 billion yuan this week, with only two sectors seeing net inflows: banking and coal [1][2] - The banking sector had 16 stocks with net inflows exceeding 100 million yuan, with Agricultural Bank of China leading at 24.72 billion yuan, followed by Industrial and Commercial Bank of China and China Construction Bank with inflows of 12.81 billion yuan and 3.94 billion yuan respectively [3][4]