Core Viewpoint - China Merchants Bank announced the resignation of Chief Risk Officer Zhong Desheng due to work reasons, effective October 31, 2025, while he will continue to serve in other roles within the bank and its subsidiaries [1] Group 1 - The board of directors has approved the appointment of current Vice President Xu Mingjie as the new Chief Risk Officer, effective upon approval of his qualifications by the National Financial Supervision Administration [1] - Xu Mingjie has been with China Merchants Bank since September 1995 and has held various positions, including Assistant General Manager of the Corporate Financial Products Department, General Manager of the Credit Execution Department, and General Manager of the Risk Management Department [1] - Xu Mingjie has served as Vice President of the bank since June 2025 [1]

Core Viewpoint - The Ministry of Finance and the State Taxation Administration of China announced a new tax policy regarding gold transactions, which includes exemptions from value-added tax (VAT) for certain transactions involving standard gold [1] Group 1: Tax Policy Changes - Members or clients trading standard gold through the Shanghai Gold Exchange and Shanghai Futures Exchange can enjoy VAT exemptions when selling standard gold [1] - The policy distinguishes between transactions that involve physical delivery and those that do not, with VAT exemptions applicable to transactions without physical delivery [1] - For transactions involving physical delivery, different tax policies apply based on the intended use of the purchased standard gold [1] Group 2: Implementation and Impact - Following the new policy, as of November 3, 2023, the price of physical gold bars displayed on the mobile banking app of China Merchants Bank includes tax, and the VAT is automatically processed by the system [1] - Customers do not need to bear additional tax costs during the trading process, but for physical gold buyback transactions, the tax will be calculated based on the real-time gold price at the time of pickup, in accordance with exchange regulations [1]

| 3. 股份分類 | 優先股 | 股份類別 | 其他類別 (請註明) | 於香港聯交所上市 (註1) | 否 | | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 360028 | 說明 | 於上交所上市之人⺠幣27,500,000,000元的非累積境內優先股（「境內優先股」） | | | | 2. 股份分類 | 普通股 | 股份類別 A | | 於香港聯交所上市 (註1) | | 否 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 600036 | 說明 | 於上海證券交易所 （「上交所」）上市之A股 | | | | | | | | 法定/註冊股份數目 | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | 20,628,944,429 | RMB | | 1 RMB | | 20,628,944,429 | | 增加 / 減少 (-) | | | 0 | | RMB | | 0 | | 本月底結存 | | 20,628,944,429 | RMB ...

Group 1 - Citigroup's stake in China Merchants Bank's H-shares increased from 4.96% to 5.04% as of October 27 [1]

Group 1 - The banking sector saw an increase of 1.41% on November 3, with China Merchants Bank leading the gains [1] - The Shanghai Composite Index closed at 3976.52, up 0.55%, while the Shenzhen Component Index closed at 13404.06, up 0.19% [1] - Major banks such as China Merchants Bank and Everbright Bank reported significant price increases of 2.20% and 2.10% respectively [1] Group 2 - The banking sector experienced a net inflow of 663 million yuan from institutional investors, while retail investors saw a net outflow of 222 million yuan [1] - China Merchants Bank had a net inflow of 2.41 billion yuan from institutional investors, indicating strong institutional interest [1] - Everbright Bank and Minsheng Bank also attracted significant institutional inflows of 1.47 billion yuan and 1.10 billion yuan respectively [1]

Core Insights - The core viewpoint of the report indicates a slight decline in operating revenue while showing a modest increase in net profit for the first three quarters of 2025 [1] Financial Performance - For the period from January to September 2025, the company achieved operating revenue of 251.42 billion yuan, a year-on-year decrease of 0.51% [1] - The net profit attributable to shareholders was 113.77 billion yuan, reflecting a year-on-year increase of 0.52% [1] Asset and Liability Overview - As of the end of the reporting period, total assets amounted to 12.64 trillion yuan, representing a growth of 4.05% compared to the end of the previous year [1] - Total loans and advances reached 7.14 trillion yuan, an increase of 3.60% from the end of the previous year [1] - Total liabilities were 11.37 trillion yuan, up by 4.12% year-on-year [1] - Customer deposits totaled 9.52 trillion yuan, marking a growth of 4.64% compared to the end of the previous year [1] Loan Quality Metrics - The non-performing loan balance stood at 67.43 billion yuan, an increase of 1.81 billion yuan compared to the end of the previous year [1] - The non-performing loan ratio was 0.94%, a decrease of 0.01 percentage points from the end of the previous year [1] - The provision coverage ratio was 405.93%, down by 6.05 percentage points year-on-year [1] - The loan provision ratio was 3.84%, a decrease of 0.08 percentage points compared to the end of the previous year [1]

Core Viewpoint - The company reported a slight increase in revenue and net profit for the first three quarters, with a notable improvement in asset quality and a positive trend in wealth management income [1][4]. Financial Performance - Revenue growth for the first three quarters was -0.5%, with a quarterly growth of +2.1% in Q3, compared to -1.7% in the first half [1] - Net profit growth for the first three quarters was +0.5%, with Q3 showing a growth of +1.0% [1] - Net interest income increased by +1.7% in Q3, with a narrowing decline in interest margins [2] - Non-interest income decreased by -4.2%, but other non-interest income showed improvement [2] Asset Quality - The non-performing loan (NPL) ratio was 0.94% at the end of Q3, down 1 basis point from the beginning of the period [1][4] - The provision coverage ratio was 406%, reflecting a strong buffer against potential losses [1] - The new NPL generation rate improved to 0.96% for the first three quarters, nearing 2021's low levels [4] Loan and Deposit Growth - Total assets grew by 4.0% from the beginning of the year, with loans increasing by 3.6% [2] - Retail loans grew by 1.4%, with specific segments like housing loans and consumer loans showing positive growth [2] - Deposits increased by 4.6%, with a significant portion in demand deposits [2] Wealth Management and Non-Interest Income - Wealth management income saw a significant increase, with net fee income growing by 0.9% and core wealth management income up by 18.8% [3] - Fund distribution income rose by 38.8%, driven by increased sales and holdings of equity funds [3] - Other non-interest income decreased by -11.4%, but investment income in Q3 showed a substantial increase of 62% [3] Investment Recommendation - The company is viewed as having strong internal growth advantages and is recommended as a buy, with a current A/H share PB valuation of 0.95x/1.02x and PE valuation of 7.2x/7.8x [4]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company has shown an upward trend in performance with a revenue decline of only 0.5% year-on-year for the first three quarters, while net profit attributable to shareholders increased by 0.5% [2][6]. - Wealth management income has accelerated, growing by 18.8% year-on-year, which has positively impacted the growth of non-interest income [2][6]. - Asset quality has improved, with a non-performing loan (NPL) ratio of 0.94% at the end of Q3, and a provision coverage ratio of 406% [2][6]. Summary by Sections Revenue and Profitability - Revenue for the first three quarters decreased by 0.5% year-on-year, with a Q3 single-quarter revenue growth of 2.1% [6]. - Net profit attributable to shareholders increased by 0.5%, with a Q3 single-quarter growth of 1.0% [6]. - Net interest income grew by 1.7% year-on-year, maintaining positive growth [2][6]. Asset Quality - The NPL ratio at the end of Q3 was 0.94%, a decrease of 1 basis point from the beginning of the year [6]. - The provision coverage ratio was 406%, reflecting a strong buffer against potential losses [6]. - The new NPL generation rate for the core bank improved to 0.96%, nearing levels seen in 2021 [2][6]. Wealth Management and Non-Interest Income - Wealth management income surged by 18.8% year-on-year, contributing to a positive turnaround in non-interest income growth [2][6]. - The net fee income grew by 0.9% year-on-year, marking the end of a 13-quarter decline [2][6]. Cost of Liabilities - The net interest margin for the first three quarters was 1.87%, with a Q3 single-quarter margin of 1.83%, showing a narrowing decline [2][6]. - Deposit costs decreased significantly by 10 basis points to 1.13% in Q3 [2][6]. Loan and Deposit Growth - Total assets grew by 4.0% from the beginning of the year, with loans increasing by 3.6% [2][6]. - Retail loans grew by 1.4%, with specific segments like housing loans and consumer loans showing positive growth [2][6]. Investment Recommendations - The company is viewed as a strong candidate for investment due to its robust growth potential, improved asset quality, and strong wealth management capabilities [2][6]. - Current valuations indicate a price-to-book (PB) ratio of 0.95x for A-shares and 1.02x for H-shares, with a price-to-earnings (PE) ratio of 7.2x for A-shares and 7.8x for H-shares [2][6].

Core Insights - Beijing Boson Quantum Technology Co., Ltd. has won the bid for China Merchants Bank's first quantum computing procurement project "Tianchen AI" [1][3] - The project attracted participation from top domestic quantum computing companies, highlighting Boson Quantum's leading position in practical quantum computing applications [3][5] Group 1: Project Details - The procurement project aims to leverage Boson Quantum's self-developed 1000-qubit coherent optical quantum computer to provide advanced quantum optimization algorithms and stable quantum computing power services for the "Tianchen AI" project [5] - Services include quantum combination computing interfaces, optimization target matrix construction, fund pool data verification, and customized quantum optimization algorithm development [5] Group 2: Industry Impact - Quantum computing is expected to revolutionize investment and credit applications in the financial sector, achieving efficiency breakthroughs by orders of magnitude [5] - Boson Quantum has established deep collaborations with notable companies such as Everbright Technology, Ping An Bank, Longying Zhida, and Huaxia Bank, showcasing its extensive practical experience in real-world scenarios [5] - The integration of quantum computing with financial services has progressed from concept validation to commercial application, providing a beacon for the industry's next-generation computing infrastructure [5][6]

Core Points - The core point of the news is the resignation of Zhong Desheng as the Chief Risk Officer of China Merchants Bank (CMB), effective October 31, 2025, due to work reasons, while he will continue to serve in other capacities within the bank [4][6] - Xu Mingjie, the current Vice President of CMB, has been appointed as the new Chief Risk Officer [6] Group 1 - Zhong Desheng's resignation as Chief Risk Officer was officially announced on October 31, 2023, and he will remain in the bank and its subsidiaries [4][6] - Xu Mingjie, born in September 1968, has a background in engineering and economics, and has held various positions within CMB since joining in September 1995 [6][8] - The board of directors of CMB expressed high appreciation for Zhong Desheng's contributions during his tenure as Chief Risk Officer [6] Group 2 - Xu Mingjie's term as Chief Risk Officer will last until the end of the current board's term, pending approval from the National Financial Regulatory Administration [6] - Xu Mingjie has previously served in multiple roles, including General Manager of the Risk Management Department and Assistant to the President [8]