智通财经网·2025-10-20 00:19Core Viewpoint - The macro-prudential management expansion and the enhancement of financial stability tools are expected to lead banks into a new phase of risk management, which will strengthen their balance sheets and accelerate the realization of net asset revaluation expectations [1][2]. Summary by Sections Macro-Prudential Management - The interview with the head of the Financial Stability Bureau of the People's Bank of China emphasizes the need to balance growth and risk prevention, expanding the macro-prudential management framework and enhancing the financial stability toolbox [2]. - Future regulations will likely deepen oversight of non-traditional banking activities, including wealth management and asset management subsidiaries [2]. Banking Sector Performance - The banking sector is expected to maintain a stable performance in Q3, with positive trends in interest margins and stable non-performing loan generation, although investment income may see a quarter-on-quarter decline [1][4]. - The KBW bank index experienced a significant drop due to concerns over credit risks in U.S. regional banks, leading to a market capitalization loss of over $100 billion for 74 major banks in a single day [3]. Stock Market Trends - Last week, both A-shares and H-shares in the banking sector outperformed the broader market, with notable gains in individual bank stocks, particularly Chongqing Bank and Agricultural Bank [4]. - The increase in mid-term dividends from banks, now reaching 17 institutions, contributes to the relative and absolute returns of bank stocks amid rising market uncertainties [4]. Investment Strategy - The banking sector is seen as offering significant value, with a shift towards alpha strategies in stock selection, focusing on companies with high and stable ROE and optimistic valuation space [1][4].