AGRICULTURAL BANK OF CHINA(SH:601288) Shang Hai Zheng Quan Bao·2026-01-09 18:38Core Viewpoint - The trend of bank branches in China is shifting towards structural improvement, with both closures and new openings, rather than a simple reduction in the number of branches [2][4]. Group 1: Bank Branch Dynamics - In 2025, over 8,000 bank branches are expected to close, while more than 8,400 new branches will be established, indicating a net increase in the number of bank branches [4]. - The closures primarily involve outdated branches with low foot traffic, while new branches are being integrated into communities, offering diverse services such as financial consultations and community activities [2][3]. Group 2: Reasons for New Branch Openings - The increase in new branches is driven by the rural revitalization strategy, with a significant proportion located in county and lower regions [4]. - Mergers and acquisitions in the banking sector have led to the transformation of village banks into branch institutions, contributing to the net increase in branches [4]. - Banks are focusing on niche customer segments and enhancing service offerings that online channels cannot fully cover [4][5]. Group 3: Transformation of Bank Branch Functions - New bank branches are adopting a more digital, lightweight, and specialized approach, reducing the number of traditional counters and increasing areas for consultation and smart devices [6]. - The future of bank branches is seen as a combination of digital and community services, providing both efficient transactions and personalized service [6][7]. - The transformed branches are expected to play a crucial role in connecting resources and serving small and micro enterprises, enhancing customer loyalty and optimizing revenue structures [6][7].