HTSC·2025-05-15 02:30Investment Rating - The report maintains an "Overweight" rating for the banking sector [8] Core Insights - Credit demand remains to be boosted, with government bonds continuing to support social financing [2][6] - April social financing increased by 1.16 trillion yuan, with a year-on-year growth of 8.7% [2][4] - The report highlights the need for policy measures to stimulate credit demand and economic recovery [6] Summary by Sections Credit Demand and Financing - In April, new loans added were 280 billion yuan, significantly lower than the expected 764 billion yuan, with a year-on-year decrease of 450 billion yuan [3] - The stock of loans grew at a year-on-year rate of 7.2%, a slight decrease from the previous month [3] - Direct financing in April reached 1.25 trillion yuan, with government bond financing contributing significantly [4] Monetary Supply and Deposits - M1 and M2 growth rates were 1.5% and 8.0% respectively, showing a slight decline compared to the previous month [5] - Total deposits decreased by 440 billion yuan, with a notable drop in both household and non-financial enterprise deposits [5] Investment Recommendations - Recommended stocks include: - China Merchants Bank (600036 CH) with a target price of 54.44 yuan and a "Buy" rating [12] - Industrial Bank (601166 CH) with a target price of 25.60 yuan and a "Buy" rating [12] - Bank of Communications (601328 CH) with a target price of 9.63 yuan and an "Overweight" rating [12] - Chengdu Bank (601838 CH) with a target price of 20.02 yuan and a "Buy" rating [12] - Shanghai Bank (601229 CH) with a target price of 11.93 yuan and a "Buy" rating [12] - Chongqing Rural Commercial Bank (3618 HK) with a target price of 7.55 yuan and a "Buy" rating [12]