Xin Lang Cai Jing·2025-07-07 11:11Core Insights - The recent surge in institutional interest in listed banks indicates a significant increase in market attention towards bank stocks, reflecting a deep re-evaluation of the banking sector's value amid a weak economic recovery [2][6] - The banking sector has shown strong performance in the first half of the year, with a total stock price increase of 13.1%, making it the second-best performing sector in the market [3][5] Institutional Interest - In the first half of the year, 19 A-share listed banks received over a thousand institutional research visits, marking a record high [1] - Regional banks, particularly those in the Yangtze River Delta, have become the primary targets for institutional investors, with Ningbo Bank, Changshu Bank, and Hangzhou Bank leading in the number of research visits [1] Dividend Policies - Most listed banks have increased their total cash dividends for 2024, with 39 out of 42 banks raising their dividend amounts by a total of 18.6 billion yuan compared to the previous year [2][6] - The average dividend yield for bank stocks stands at 5.04%, significantly higher than the 1.65% yield of 10-year government bonds, making bank stocks attractive to long-term institutional investors [2][3] Asset Quality and Net Interest Margin - Institutions are focusing on banks' asset quality, net interest margin management, and dividend policies during their research [4][5] - The banking sector's non-performing loan ratio is expected to remain low at 1.50% in 2024, although overdue rates are rising, particularly among rural commercial banks [5][6] Future Outlook - Institutions are likely to focus on whether net interest margins stabilize, the direction of loan structure adjustments towards green and technology finance, and the potential for new business growth through digital transformation and comprehensive services [7]