Hua Xia Shi Bao·2025-08-07 11:44Core Viewpoint - Agricultural Bank of China has surpassed Industrial and Commercial Bank of China in terms of circulating market value, marking a significant milestone in its market performance [2][3][4]. Market Performance - On August 6, Agricultural Bank's stock closed at 6.62 CNY per share, achieving a circulating market value of 2.11 trillion CNY, surpassing ICBC for the first time [3]. - On August 7, Agricultural Bank's stock rose to 6.71 CNY per share, with a market value of 2.142 trillion CNY, while ICBC's market value stood at 2.114 trillion CNY [4]. - Despite the circulating market value lead, ICBC maintains a total market value of 2.794 trillion CNY compared to Agricultural Bank's 2.348 trillion CNY [3][4]. Financial Performance - Agricultural Bank reported a revenue of 186.67 billion CNY for Q1 2025, a year-on-year increase of 0.35%, and a net profit of 71.93 billion CNY, up 2.2% [5]. - The bank's non-performing loan ratio was 1.28%, a slight decrease from the beginning of the year, indicating strong asset quality [5][10]. Market Dynamics - Analysts attribute the rise in Agricultural Bank's market value to its higher circulating share ratio compared to other state-owned banks, allowing it to benefit more directly from market trends [4][6]. - The bank's strong dividend policy and stable performance have attracted long-term investors, contributing to its stock price increase [6][10]. Strategic Positioning - Agricultural Bank has a significant focus on rural finance, with a total of 10.58 trillion CNY in loans and advances in county areas, reflecting a growth of 7.37% [5][11]. - The bank's extensive network in rural areas positions it well to capitalize on the growth potential in the rural financial market, supported by national policies [11][12]. Capital Structure - The successful issuance of TLAC bonds totaling 500 billion CNY in August 2023 has enhanced Agricultural Bank's capital structure and risk resilience [12][13]. - The issuance of TLAC bonds reflects market confidence in the bank's operational prospects and supports its ongoing growth strategy [12].