Bank of China Securities·2025-07-15 01:26Investment Rating - The report rates the banking sector as "Outperforming the Market" [1] Core Viewpoints - The banking sector experienced a decline of 1.00% this week, following a previous increase of 3.77% [1][13] - Year-to-date, the banking sector has risen by 16.59%, ranking second among all industries, with a focus on the investment value of bank stocks [1] - Key banks to watch include China Merchants Bank, Agricultural Bank of China, and Jiangsu Bank [1] Summary by Sections Banking Sector and Stock Performance - The A-share banking index fell this week, with 17 out of 42 banks seeing an increase in stock prices [2][12] - State-owned banks had an average increase of 1.08%, while joint-stock banks saw a slight decline of 0.08% [2][15] - Over the past month, state-owned banks increased by 8.98%, while joint-stock banks rose by 9.80% [2][15] Funding Price Situation - The central bank's reverse repo operations decreased, with a net withdrawal of 226.5 billion yuan this week [3][28] - The overnight SHIBOR rate rose to 1.33%, and the 7-day SHIBOR rate increased to 1.48% [3][31] - The average overnight repo rate for deposit institutions was 1.34%, reflecting a rise of 3 basis points [3][31] Bond Market Situation - Total bond market financing reached 17,057.9 billion yuan, with net financing increasing by 2,087.7 billion yuan compared to last week [4][41] - Financial bonds issuance was 4,071.5 billion yuan, up by 2,030.5 billion yuan from the previous week [4][41] - Government bonds saw a rise in yields, with the 1-year yield at 1.37% and the 10-year yield at 1.67% [5][43] Interbank Certificate of Deposit Market Review - The issuance of interbank certificates totaled 4,259 billion yuan, an increase of 1,833 billion yuan from last week [54] - The weighted average issuance rate was 1.61%, down by 1 basis point [54]