Core Viewpoint - The banking sector has shown steady progress in the first half of 2025, with various banks outlining their strategies for the second half, focusing on "Five Major Articles," reform, cost reduction, efficiency enhancement, and risk management [1][2][9]. Group 1: Performance and Strategy - Banks have reported stable performance in the first half of 2025, with Agricultural Bank achieving a total loan volume of 10 trillion yuan in county-level loans [2]. - Huaxia Bank emphasized its commitment to ten key actions to ensure steady growth and operational improvement [2]. - Guangfa Bank's total assets reached 3.69 trillion yuan, with a continuous decline in both non-performing loan balance and ratio [2]. - The "Five Major Articles" have become a guiding principle for banks, with institutions like Everbright Bank focusing on enhancing technology-driven financial services and green finance [2][3]. Group 2: Focus Areas for the Second Half - Banks are prioritizing key tasks such as stabilizing the real estate market, promoting consumption, and addressing internal competition [3][5]. - Agricultural Bank aims to enhance technology-driven financial innovation and improve supply for consumer and inclusive finance [3]. - Several banks, including Ping An Bank and Guangfa Bank, have initiated "anti-involution" measures to resist excessive competition and focus on long-term strategies [5][7]. Group 3: Risk Management - Risk management remains a central theme, with banks like Agricultural Bank emphasizing the need to enhance service quality while managing risks effectively [9][10]. - Ping An Bank has called for increased awareness of risk and compliance, focusing on rectifying key areas and managing public sentiment [10]. - Other banks, such as Huaxia Bank and Suzhou Bank, have highlighted the importance of solidifying risk management foundations and ensuring compliance with regulations [9][10].

银行股近期有所调整，市场看法出现分歧。银行股属于A股的核心资产，一定涨幅之后的调整有其必然 性，但不应该盲目看空。毕竟银行股的价值摆在那里，仍然是价值投资者的核心标的。 银行股此轮调整的直接诱因，可归结为市场情绪的阶段性波动与资金配置的再平衡。前期银行股在稳健 业绩与低估值修复的双重驱动下，累积了一定涨幅，部分资金选择获利了结，导致短期抛压增加。同 时，A股市场整体风格切换，资金流向成长赛道，进一步加剧了银行股的资金分流。 当然，投资银行股也需关注潜在风险，如区域经济分化导致的资产质量差异、金融科技冲击下的业务转 型压力等。但这些风险更多是结构性的，可通过精选个股、分散配置等方式有效规避，而非否定整个板 块的投资价值。 总之，银行股的短期调整，本质上是市场对核心资产的一次压力测试。对于认同价值投资理念的投资者 而言，银行股以其业绩确定性、估值安全边际与分红稳定性，仍是A股市场中不可多得的优质选择。 随着2025年中期报告的公布，业绩和成长性优良的银行股仍然具有长期持有的价值，而且中报的发布将 会消除投资者心中的不确定性，这也为投资者放心持有提供了更多心理支持。 然而，这些因素更多属于短期扰动，而非长期趋势的转 ...

1. Report Industry Investment Rating - No information provided in the content 2. Core Views of the Report - Anti - involution policies affect commodity prices, shock the market's inflation expectations, and cause a significant adjustment in the bond market. Credit bond yields rise with interest rates, and most credit spreads widen, with secondary and perpetual (二永) bonds showing large fluctuations and high spread increases. Fund companies with the most unstable liability ends sell significantly, while insurance companies increase their buying efforts, and bank wealth management remains relatively stable. The trading enthusiasm for medium - and long - term bonds such as urban investment bonds, industrial bonds, and 二永 bonds remains high [2]. - It is too early to worry about negative feedback, with a very low probability. Market learning has improved the ability to respond, and there has been no change in macro - expectations. Moreover, bank wealth management's increasing consideration of liquidity in its configuration can prevent negative feedback [3]. - The asset shortage pattern remains unchanged and may even intensify. Interest rates may have short - term adjustments but do not support continuous and significant adjustments. Once interest rates stabilize, credit is likely to stabilize. After the market adjustment, it will be more difficult to further compress credit spreads compared to previous lows, and credit spreads are more likely to fluctuate. Investors need to seize phased trading opportunities [4]. - Investors should focus on coupon - bearing assets, and consider both coupon and trading operations for long - term bonds. For trading strategies, medium - and long - term 二永 bonds are recommended; for allocation strategies, sinking investment in urban investment bonds is still recommended. Wait for trading opportunities for ultra - long - term bonds [5]. 3. Summary by Relevant Catalogs 3.1 Market Review: Significant Correction, Noticeable Widening of 二永 Bond Spreads 3.1.1 Market Performance - This week, the credit bond market significantly corrected, and credit spreads widened. The stock market strengthened, and the bond market significantly corrected. Credit bond yields generally rose, especially for medium - and long - term 二永 bonds, which increased by over 10bp, with the 10Y 二永 bond correcting by up to 14.5bp. Most credit spreads widened, with 二永 bonds seeing more significant increases, while spreads of some medium - and long - term notes, enterprise bonds, and urban investment bonds of certain grades slightly narrowed [10]. - From a daily perspective, urban investment bond yields generally rose, with the adjustment amplitude first increasing and then decreasing, reaching a daily correction high on Thursday. From Monday to Tuesday, long - term 二永 bonds led the yield increase, but the overall amplitude was relatively small. From Wednesday to Thursday, the yield increase continued to expand, with long - term 二永 bonds correcting by over 5bp on Thursday and short - term bonds increasing by about 4bp. The long - and short - term yields of urban investment bonds and medium - term notes also increased by 3.5bp - 5bp. On Friday, the market continued to decline, but the amplitude narrowed. Credit spreads showed a divergent trend. Affected by the different adjustment speeds of credit bonds and interest - rate bonds, the spreads of 二永 bonds, known as "interest - rate amplifiers," generally widened, while the spreads of less - liquid urban investment bonds and medium - term notes were still slightly compressed in the early stage and widened on Friday [16]. 3.1.2 Insurance Continues to Allocate, Funds Sell on a Large Scale - Insurance companies' credit bond allocation remains strong. This week, insurance companies continued to be net buyers, with a net buying scale of 12.563 billion yuan, a 38.7% increase from the previous week. The net buying volume of ultra - long - term credit bonds over 5 years was 6.75 billion yuan, with the increase intensity remaining basically the same as last week [18]. - Funds sold credit bonds significantly this week, with a selling scale of 22.578 billion yuan. The net selling volume within 5Y was 12.738 billion yuan, and the net selling volume over 5Y was 7.474 billion yuan [18]. - Bank wealth management scale slightly increased. As of July 20, the bank wealth management scale was 31.02 trillion yuan, an increase of 0.06 trillion yuan from the previous weekend. This week, the net buying scales of wealth management and other product categories for credit bonds were 15.301 billion yuan and 13.078 billion yuan respectively, with month - on - month changes of 15.80% and 39.13% [21][22]. 3.1.3 Transaction Proportion: Decrease in Low - Rating Transaction Proportion - The transaction proportion of urban investment bonds, industrial bonds, and 二永 bonds with a remaining term of over 3 years was 30%, 29%, and 72% respectively, indicating that the transaction proportion of medium - and long - term bonds remained high. For urban investment bonds, the proportion of transactions under 3 years remained basically the same as last week, with the 3 - 5Y transaction proportion decreasing by 2 percentage points and the over - 5Y proportion increasing by 2 percentage points. For industrial bonds, the proportion of transactions within 1 year decreased by 1 percentage point, the 1 - 3Y proportion decreased by 2 percentage points, and the 3 - 5Y proportion increased by 3 percentage points. For 二永 bonds, the proportion of transactions within 1 year decreased by 1 percentage point, the 1 - 3Y proportion increased by 2 percentage points, and the 3 - 5Y proportion decreased by 3 percentage points [28]. - The proportion of low - rating transactions of non - financial credit bonds decreased this week. The proportion of transactions of urban investment bonds with a rating of AA(2) and below decreased by 1 percentage point from last week, the proportion of industrial bonds with a rating of AA and below decreased by 1 percentage point month - on - month, and the proportion of 二永 bonds with a rating of AA and below decreased by 3 percentage points from last week [29]. 3.2 Market Outlook: Redemption is Controllable, Seize Trading Opportunities 3.2.1 Redemption is Controllable, Seize Trading Opportunities - Reasons for market adjustment: With the continuous implementation of anti - involution policies, commodity futures prices have risen significantly, affecting the market's inflation expectations. The Nanhua Industrial Products Index, which reflects commodity price trends, has also risen significantly. Historically, this index has a certain forward - looking predictive effect on PPI. By observing the term structure of interest - rate swaps, indicators such as IRS FR007 5 - year - 1 - year and 1 - year - FR007 have quickly turned positive, indicating a change in the market's inflation expectations [31][33]. - Regarding the concern of negative feedback: It is too early to worry about negative feedback, with a very low probability. Market adjustments in September 2024 and March 2025 were more significant than the current one, but no obvious negative feedback occurred. The key lies in the increasing consideration of liquidity in bank wealth management's configuration. Since April this year, the absolute amount and proportion of inter - bank certificate of deposit (NCD) allocation have been at historically high levels, enabling wealth management to handle market fluctuations. As long as bank wealth management remains stable, the key link of market negative feedback can be stopped [38][40]. - Analysis of tight funds: The funding situation tightened on Thursday this week, leading to a higher market adjustment amplitude. The tightening on Thursday may be due to banks' liability - side issues. From the perspective of large banks' deposit - loan spreads, the deposit - loan spreads of large banks generally decline seasonally in July. After the significant reduction of deposit interest rates in May, large banks face the pressure of term - deposit maturity transfer, resulting in relatively large liability pressure. A low deposit - loan spread means reduced stability of funding rates, which are more dependent on the central bank's liquidity injection. Any daily misalignment in the central bank's liquidity injection can significantly impact funding rates [41][42]. - Future trends: The asset shortage pattern remains unchanged and may even intensify. Interest rates may have short - term adjustments, but the current macro - environment does not support continuous and significant interest - rate adjustments. The impact of anti - involution policies on inflation expectations has been fully priced in the short term through the significant rise in commodity prices. For credit bonds, it will be more difficult to further compress credit spreads below previous lows this year. Credit spreads are more likely to fluctuate, and investors need to seize phased small - band opportunities [50][56]. 3.2.2 Science and Technology Innovation Bonds Continue to Contribute Net Financing to the Market - In July, non - financial credit bond financing performed well, with the net financing exceeding the levels of the same month in the previous two years, reaching 347.9 billion yuan. The supply of long - term credit bonds has increased. Recently, the sentiment for extending the duration of credit bonds has been positive. Although the issuance duration in July has decreased month - on - month, there is still room for extending the duration [57][59]. 3.3 What to Buy in Credit? 3.3.1 Focus on High - Grade 二永 Bonds for Trading, Weak - Quality Urban Investment Bonds for Coupon - The price - comparison of short - term 二永 bonds is positive, while that of medium - and long - term 二永 bonds is negative. Considering different investor needs, high - grade trading strategies are recommended to focus on 二永 bonds, and low - grade coupon strategies are recommended to focus on urban investment bonds. This week, the price - comparison advantage of short - term AAA second - tier capital bonds over medium - term notes remained positive, and the price - comparison of long - term AAA second - tier capital bonds with medium - term notes fluctuated around 0. The price - comparison of short - term urban investment bonds with medium - term notes is positive, and the price - comparison of long - term low - grade urban investment bonds has quickly recovered to the historical central level. Urban investment bonds still have a price - comparison advantage over medium - term notes, but the difference is not significant. Considering the bond - selection scope, urban investment bonds are still preferred [62][64]. 3.3.2 General Credit Coupon is More Advantageous - Currently, the proportion of urban investment bonds with a valuation above 2.3% is 19.8%, that of non - financial industrial bonds is 10.8%, and that of 二永 bonds is 6.8%. From the perspective of coupon - based bond selection, general credit offers a wider bond - selection space. For urban investment bonds, investors can consider both coupon and trading operations for the long - term, and can continue to participate in short - term high - coupon varieties. For industrial bonds, investors can focus on important local state - owned real - estate enterprises among real - estate developers, such as Shoukai and Jianfa Real Estate; among non - real - estate entities, focus on China Minsheng Bank, Jizhong Energy, and Bohai Bank [68][72]. 3.3.3 Statistics of Primary Issuance - Relevant data shows the weekly net financing and cumulative net financing of various credit bonds, including urban investment bonds, industrial bonds, 二永 bonds, and other financial bonds from December 30, 2024, to July 27, 2025 [77]. 3.3.4 Details of Secondary Valuation Changes - No detailed information provided in the content

Core Viewpoint - The banking industry is experiencing a shift towards "anti-involution" as banks face intense competition, leading to a focus on high-quality development, cost reduction, and retail transformation [1][2][21]. Group 1: Industry Trends - The term "anti-involution" has gained popularity in the banking sector, indicating a move away from excessive competition that harms profitability [2][12]. - The Guangdong Banking Association has initiated a comprehensive rectification of "involutionary" competition, proposing a regulatory framework to address negative practices [2][4]. - The current competitive landscape is characterized by asymmetric declines in deposit and loan interest rates, resulting in a narrowing net interest margin [4][10]. Group 2: Competitive Practices - Banks are engaging in aggressive pricing strategies, with some offering consumer loan rates as low as 2.6% and business loan rates between 2.3% and 3% [4][10]. - The competition has led to a situation where some banks are offering loans at rates below their cost of funds, which is unsustainable [10][11]. - The People's Bank of China has noted significant discrepancies between policy interest rate adjustments and actual loan rates, highlighting the impact of fierce competition [10]. Group 3: Regulatory and Self-Regulatory Measures - The banking industry is implementing self-regulatory agreements aimed at promoting rational pricing and curbing unethical marketing practices [5][21]. - The focus on self-regulation is seen as essential for maintaining a healthy competitive environment and ensuring sustainable growth in the banking sector [4][19]. Group 4: Future Outlook - The "anti-involution" movement is expected to positively impact the banking sector's profitability, with projections indicating an 8% potential increase in earnings by 2026, particularly benefiting joint-stock banks [21][22]. - The emphasis on high-quality development and service to the real economy is expected to drive banks' performance in the coming years [19][21].

Core Viewpoint - The financial industry is increasingly focusing on resisting "involution" competition, with institutions like Ping An Bank taking steps to promote self-discipline and strategic adjustments to combat this issue [3][5][10]. Group 1: Company Actions - Ping An Bank held a mid-year meeting to outline its business development plan and promote anti-"involution" competition efforts, with over 2,000 employees required to sign a commitment letter [3]. - In the first quarter, Ping An Bank reported a revenue of 33.709 billion, a year-on-year decrease of 13.1%, and a net profit of 14.096 billion, down 5.6% [3]. - The bank's total assets reached 5.78 trillion at the end of the first quarter, reflecting a slight increase of 0.1% from the end of the previous year [3]. Group 2: Industry Trends - The Guangdong Banking Association has established a "1+3+N" system to combat "involution" competition, which includes a negative list from regulatory bodies and self-discipline agreements [5]. - The call for resisting "involution" is echoed nationwide, with provinces like Fujian and Anhui issuing self-discipline agreements to prevent malicious competition [6]. - The financial sector is facing pressure from low interest rates and low spreads, with banks like China Merchants Bank reporting a revenue decline of 3.09% and a net profit drop of 2.08% in the first quarter [9]. Group 3: Regulatory Environment - Regulatory bodies are actively opposing "involution" competition, with measures including the issuance of negative lists and guidance for industry associations to create self-discipline agreements [5][6]. - The implementation of the "reporting and operation unity" policy in the insurance sector aims to standardize market practices and curb malicious competition, resulting in a 30% reduction in average commission levels [8]. Group 4: Challenges and Perspectives - The banking industry is experiencing a critical point with net interest margins dropping to around 1.43%, leading to concerns about profitability and sustainability [9]. - Some industry professionals argue that the focus on commission rates and fees is merely a superficial response to deeper issues of homogeneity in the market, suggesting that true reform requires addressing these underlying problems [10].

Core Viewpoint - The competition in the mortgage loan market is intensifying, with banks focusing on improving service and efficiency to attract business, especially among smaller banks that lack the marketing budgets of larger institutions [4][11][12]. Group 1: Market Dynamics - The mortgage loan business is seen as a critical driver for the sustained growth of retail credit by banks [3][4]. - The current competitive landscape is driven by the banks' desire to secure quality credit assets, as mortgage loans have low default rates and stable repayment cycles [4][5]. - Large banks are leveraging partnerships with real estate agencies to secure a stable volume of mortgage loans, while smaller banks are forced to compete on service and efficiency due to limited budgets [5][11]. Group 2: Operational Strategies - Banks are adopting aggressive strategies to enhance their mortgage loan business, including rapid response to loan applications and improving approval times [11][12]. - Some banks are reallocating funds from consumer loans to mortgage loans to boost their mortgage business volume [12][14]. - Smaller banks are also relaxing their loan approval criteria to gain favor with real estate agencies and increase their mortgage loan referrals [14][15]. Group 3: Competitive Pressure - Internal performance metrics and competitive pressures are driving bank employees to work harder to secure mortgage loan business [17][19]. - There is a trend of banks offering kickbacks to real estate agents to increase mortgage loan volumes, despite regulatory risks associated with such practices [20][21]. - The need for differentiation in financial services is emphasized, suggesting that banks should offer tailored products to meet diverse customer needs [21].

Core Viewpoint - The financial industry is experiencing a shift towards "anti-involution" competition, with banks being urged to adopt more rational and healthy competitive practices to enhance operational capabilities and contribute to sustainable economic development [1][2][4]. Group 1: Industry Response - Ping An Bank's Guangzhou branch has initiated a meeting to implement "anti-involution" strategies, aiming for high-quality and sustainable development [2]. - Various financial regulatory bodies and banking associations across regions are advocating for adherence to self-regulatory mechanisms and the establishment of a reasonable industry evaluation and incentive system [1][4]. - The Guangdong Financial Regulatory Bureau has explicitly opposed "involution" competition and has issued a negative list to guide the banking and insurance sectors [4]. Group 2: Current Challenges - The financial industry is facing intensified "involution" competition, characterized by high-interest deposit promotions and aggressive customer acquisition strategies [5][6]. - The core issues stem from a narrowing interest margin (1.43% in 2024), digital lag in smaller banks, and a shift in corporate financing towards direct market channels [6]. - The negative impacts of "involution" include compressed profit margins, distorted risk preferences, and limited capital replenishment for banks [6]. Group 3: Future Directions - The central economic work conference has called for comprehensive measures to address "involution" competition, emphasizing the need for banks to abandon scale and speed obsessions [7]. - Banks, particularly smaller ones, are encouraged to adopt differentiated competition strategies and improve asset-liability management to enhance profitability and sustainability [7][8]. - The importance of self-regulation and avoiding price wars has been highlighted, with large commercial banks urged to lead by example [8].

Core Viewpoint - The Chinese financial industry is undergoing a profound transformation driven by new regulatory measures aimed at tightening monetary policy and mitigating systemic financial risks, particularly in the areas of internet lending and shadow banking [1][4]. Group 1: Regulatory Changes - The People's Bank of China (PBOC) issued guidelines on July 15 to strengthen financial risk prevention, marking a new phase of tightened monetary policy [1]. - New regulations significantly increase the required contribution of banks in joint lending from 30% to 70%, effectively reducing the leverage of internet platforms [2]. - The regulations also target shadow banking, which had a scale of approximately 25.3 trillion yuan at the end of 2024, accounting for 19.7% of GDP [4]. Group 2: Impact on Financial Institutions - Major banks like Industrial and Commercial Bank of China (ICBC) and China Construction Bank are adjusting their strategies, with ICBC halting joint lending with 10 internet platforms [2]. - Smaller banks are particularly affected, with internet loan income constituting an average of 17.3% of their operating revenue, and some exceeding 30% [5]. - Banks are responding by tightening their investment in non-standard assets and focusing on compliance and risk management [4][5]. Group 3: Long-term Outlook - The adjustments are expected to lead to a healthier and more sustainable financial ecosystem, with improved transparency in fund flows and more reasonable risk pricing [5]. - Analysts predict that the overall non-performing loan ratio in the banking sector will decrease to around 1.2% by 2026 following the adjustment period [5]. - The regulatory changes are part of a broader systemic effort to reduce financial leverage and prevent risks, with 23 significant policy documents issued since 2021 [4][5]. Group 4: Balancing Act - The new regulations reflect the regulatory authorities' commitment to balancing financial openness with risk prevention amid increasing global economic uncertainties [7]. - The adjustment process is expected to be ongoing, requiring adaptation from all market participants [7].

Investment Rating - The industry investment rating is "Positive" and maintained [12] Core Viewpoints - In 2023, cyclical bank stocks have generally lagged in performance and are at historically low valuations. The market is beginning to focus on which cyclical bank stocks currently offer attractive value for investment [2][6] - The report highlights three categories of banks worth attention: stable performance small and medium-sized rural commercial banks, city commercial banks with improving retail asset quality, and undervalued joint-stock banks [2][6] Summary by Sections Small and Medium-Sized Rural Commercial Banks - Changshu Bank has significantly lagged behind the sector in 2023, with a valuation of 0.77x 2025 PB, at a historical percentile of 24%. Despite concerns over retail credit demand, the bank's operational performance remains strong, with a revenue growth of 10.1% and a net profit growth of 13.6% in the first half of 2025 [7] - Ruifeng Bank, another leading rural commercial bank in Zhejiang, has a valuation of 0.56x 2025 PB, also under pressure from pessimistic economic expectations. However, it is expected to maintain double-digit credit growth under its strategic initiatives [8] City Commercial Banks - Ningbo Bank, with a valuation of 0.80x 2025 PB, has seen a significant decline in its stock price since 2023. The bank's retail loan quality is improving, and if economic expectations rise, there is potential for valuation recovery [9] - Changsha Bank, which focuses on consumer finance, has a low valuation of 0.56x 2025 PB and has underperformed compared to peers. A recovery in economic expectations could enhance its valuation [9] Joint-Stock Banks - Ping An Bank's valuation is at 0.52x 2025 PB, significantly lower than its peers. The bank has experienced a decline in performance due to strategic adjustments by its new management. If real estate policies improve and economic expectations rise, there is potential for revaluation [10]

Group 1 - The core point of the announcement is that the controlling shareholder, Zhongyou Gas Investment Group, has partially lifted the pledge on its shares in Shandong Shengli Co., Ltd. to optimize asset structure and reduce financing costs [1][2] - Zhongyou Gas Investment Group has lifted the pledge on 22,928,497 shares out of a total of 177,000,000 shares pledged to Ping An Bank for merger loan financing [1] - As of the announcement date, the total pledged shares held by Zhongyou Gas Investment Group and its concerted parties are disclosed, indicating a significant portion of shares are still under pledge [1] Group 2 - Zhongyou Gas Investment Group is reported to have a good credit and financial status, with stable production and operations, and the risks associated with the pledged shares are considered controllable [2]