智通财经网·2025-07-09 00:05Core Viewpoint - The modification of CIPS rules is expected to accelerate the internationalization of the RMB, benefiting banks' cross-border business expansion [1][5] Summary by Sections Bank Sector Performance - The banking sector outperformed the market with a 3.77% increase, while the CSI 300 index rose by 1.54%. The performance of different types of banks includes: state-owned banks (+2.76%), joint-stock banks (+4.41%), city commercial banks (+4.01%), and rural commercial banks (+2.47%). Notably, 41 listed banks saw their stock prices rise, with Zhejiang Commercial Bank (+7.92%), Shanghai Pudong Development Bank (+7.6%), and Shanghai Bank (+7.53%) leading the gains. As of July 4, the banking sector's price-to-book (PB) ratio was 0.70, and the dividend yield was 5.65% [2] CIPS Rule Revision - On July 6, the People's Bank of China (PBOC) solicited opinions on the draft of the revised CIPS business rules. The main focus of the revision is to improve the management mechanism for participants and set only principle-based requirements for their business behaviors. This revision is expected to further promote the internationalization of the RMB and support the development of banks' cross-border business. The optimization of business rules is seen as necessary and forward-looking, enhancing the attractiveness of CIPS and increasing the international influence of the RMB [3] Investment Opportunities in the Banking Sector - The banking index reached a closing price of 4603.91 on July 4, marking a nearly 10-year high, with a weekly increase of 3.77%. Three key investment opportunities are identified: 1. The low interest rate environment continues to attract medium to long-term funds, with insurance capital increasingly investing in bank stocks. For instance, Ping An Life increased its stake in Postal Savings Bank of China H-shares to 13% as of June 30. The stable dividend yield of banks is expected to outperform bonds and wealth management returns [4] 2. The low allocation of public funds and the expansion of broad-based indices are expected to bring incremental capital inflows, benefiting quality regional banks significantly [4] 3. The acceleration of convertible bond conversions among small and medium-sized banks is anticipated to provide short-term opportunities, as seen with Qilu Bank announcing early redemption of its convertible bonds [4] Investment Recommendation - The modification of CIPS rules is expected to enhance the internationalization of the RMB and benefit banks' cross-border business. The acceleration of convertible bond conversions among small and medium-sized banks is likely to strengthen their capital base. The growth of medium to long-term funds and the potential recovery of public fund allocations are expected to reshape bank valuations positively. The company maintains a positive outlook on the banking sector's allocation value and continues to recommend investment in this area [5]