CMS·2025-08-07 06:48Investment Rating - The report maintains a "Recommendation" rating for the banking industry, indicating a positive outlook for the sector's fundamentals and expectations for the industry index to outperform the benchmark index [4]. Core Insights - The report clarifies the various metrics for calculating the market value of banks, particularly those listed on both A and H shares, emphasizing the importance of accurate valuation methods for investment analysis [1][2]. - It discusses the rationale behind insurance capital's preference for investing in bank stocks, particularly in the context of the dual listing of banks on A and H shares, which can lead to misunderstandings regarding shareholding ratios and significant shareholder definitions [2][3]. - The report highlights the distinction between two main definitions of significant shareholders: the "bank major shareholder" definition and the "exchange definition," with a focus on the implications for investment analysis [3]. Summary by Sections Market Value Calculation - There are five key metrics for calculating the market value of banks listed on both A and H shares, including total market value for A and H shares, and equity fair market value [1]. - The report provides a detailed table of market values for various banks, showcasing the differences in A and H share valuations [8]. Insurance Capital's Shareholding - The report elaborates on the two main definitions of shareholding: the major shareholder definition, which includes insurance capital, and the exchange definition, which is easier to meet due to lower thresholds [2][3]. - It emphasizes that understanding the major shareholder definition is more relevant for investment analysis, as it reflects substantial influence over bank management [3]. Industry Performance - The banking sector's total market capitalization is reported at 11,282.5 billion, with a circulating market value of 10,681.3 billion, indicating a significant presence in the market [4]. - The report includes performance metrics over different time frames, showing a relative performance of -5.0% over 1 month, 9.4% over 6 months, and 13.3% over 12 months compared to the benchmark [6].