Suzhou Rural Commercial Bank(SH:603323) Zheng Quan Shi Bao Wang·2025-08-29 00:27Core Viewpoint - Insurance capital has shown a sustained enthusiasm for increasing holdings in bank stocks since 2025, particularly in regional banks, with significant recent activity in the Hong Kong stock market [1][9]. Group 1: Insurance Capital Activity - Hong Kong-based Hongkang Life Insurance has become a major shareholder in Su Nong Bank, holding over 100 million shares, which is approximately 4.95% of the bank's total shares, nearing the threshold for a formal stake increase [1][2]. - In 2023 and 2024, Wuxi Bank was also a target for insurance capital, with Changcheng Life Insurance increasing its stake to 4.95% by the end of 2023 [4]. - In 2025, insurance capital has accelerated its acquisition of bank stocks, particularly in the Hong Kong market, with regional banks like Zhengzhou Bank also receiving attention from Hongkang Life [1][7]. Group 2: Financial Performance of Su Nong Bank - Su Nong Bank reported a slight increase in revenue for the first half of 2025, with operating income reaching 2.28 billion yuan, a year-on-year growth of 0.21%, and a net profit of 1.178 billion yuan, up 5.23% year-on-year [4][5]. - As of June 30, 2025, Su Nong Bank's total assets amounted to 223.249 billion yuan, reflecting a growth of 4.33% since the beginning of the year, with a non-performing loan ratio stable at 0.90% [5]. - The bank plans to distribute a cash dividend of 0.09 yuan per share, totaling approximately 182 million yuan, which represents 15.42% of its net profit for the first half of 2025 [6]. Group 3: Market Trends and Valuation - The banking sector has become a popular investment area, particularly for insurance capital, due to its high dividend yields and stable performance, with a current dividend yield of 3.69% [9]. - Insurance capital has been actively acquiring shares in major banks, with significant increases in holdings in banks like China Postal Savings Bank and Agricultural Bank of China, indicating a trend of increased investment in the banking sector [9]. - The new accounting standards allow insurance funds to account for bank stock purchases under the equity method, potentially leading to substantial paper profits, especially as many bank stocks are trading below their net asset values [10].