Report Industry Investment Rating No relevant content provided. Core View of the Report - Appropriate realization and waiting for layout opportunities. Currently, the convertible bond market is facing supply - demand contradictions and high valuations. In the context of potential increased volatility in the equity market, convertible bonds may face valuation adjustment pressure. Short - term investment should focus on large - cap debt - biased varieties, avoid bonds with overly high downward - revision expectations, realize profits appropriately, maintain a flexible position, and wait for the next layout opportunity [2][45]. Summary According to the Directory 1. Appropriate Realization, Waiting for Layout Opportunities - **Market Performance in Q2**: The equity market showed a deep "V" trend in Q2. The convertible bond index rose 3.4%, outperforming the Shanghai Composite Index. The low - price index rose 2.7%, and the equal - weighted index rose over 4% [12]. - **Supply - demand Analysis**: In Q2, convertible bond supply accelerated, with 11 new issues and a scale of 8 billion yuan. However, due to maturities and forced redemptions, the total scale decreased by over 55 billion yuan compared to Q1. The short - term supply supplement is limited. On the demand side, it first decreased and then increased. In June, there was a large - scale capital inflow [13][21]. - **Valuation Analysis**: The valuation of balanced convertible bonds rose significantly at the end of June, breaking through the annual high. The valuation of debt - biased convertible bonds reached a historical high, while the valuation of equity - biased convertible bonds remained at a low level [39][40]. 2. Market Review 2.1 Equity Market: Index Continued to Rise Strongly - **Index Performance**: Last week, the Shanghai Composite Index and the ChiNext Index rose 1.4% and 1.5% respectively. The market trading volume rebounded, and the theme hotspots rotated actively [47]. - **Style and Sector Performance**: Industries such as steel and building materials led the rise, while the banking sector reached a new high for the year. Some sectors such as computer and non - bank finance declined [47]. - **Valuation**: The PE (TTM) of all A - shares was 15.76X, and the PE (TTM) of the ChiNext was 36.38X, both showing an upward trend [48]. 2.2 Convertible Bond Market: Valuation Continued to Rise - **Index and Trading Volume**: The CSI Convertible Bond Index closed at 447.46, rising 1.21%. The average daily trading volume was 64.766 billion yuan, a 11.85% increase from the previous period [54]. - **Individual Bond Performance**: Dianhua, Saili, and Anke led the gains, while Jinji, Sanyang, and Jingduan led the losses [54]. - **Valuation**: The conversion premium rate of convertible bonds with a parity of 90 - 110 was 26.42%, and the average YTM of convertible bonds with a parity below 80 was - 0.27%, indicating a significant increase in valuation [56]. 3. Convertible Bond Investment Strategy 3.1 Stock Market - In the short term, the external uncertainty has increased significantly, and the index volatility may intensify. The broad - based index will be in a volatile state, and investors can focus on sectors such as innovative drugs, self - controllability, AI +, and solid - state batteries, as well as industries with improved prosperity [3]. 3.2 Convertible Bonds - The overall view is neutral and cautious, preferring structural individual bond opportunities. Specific areas to focus on include TMT, robotics, low - altitude areas, innovative drugs, debt - resolution directions, price - rising cyclical sectors, bottom - position bonds, and newly - listed bonds [4]. 3.3 Primary Market Tracking - Last week, 2 new convertible bonds were issued, 1 convertible bond was approved by the shareholders' meeting, and 1 convertible bond issuance was accepted by the exchange [5][68].

Core Viewpoint - A-share listed banks are entering a peak period for cash dividends, with a total annual dividend amount reaching 509.23 billion yuan for the 2024 fiscal year, reflecting strong shareholder return capabilities [1][3][4] Group 1: Dividend Distribution Overview - As of July 7, 2024, 35 out of 42 listed banks have announced their profit distribution plans, with 7 more awaiting formal implementation [3] - The total annual dividend amount of 509.23 billion yuan includes 303.55 billion yuan already distributed by 26 banks, excluding four major state-owned banks [3][4] - Major state-owned banks, such as China Construction Bank and Bank of China, lead in dividend distribution, with Construction Bank distributing 100.75 billion yuan, a slight increase of 0.75% year-on-year [3][4] Group 2: Performance of Joint-Stock and City Commercial Banks - Among joint-stock banks, Industrial Bank has the highest cash dividend of 22.43 billion yuan, up 3.83% year-on-year, while other banks like Ping An Bank and Huaxia Bank show varying dividend trends [4] - City and rural commercial banks are enhancing shareholder returns by increasing the frequency of dividends, with over half of the 18 banks implementing both mid-year and year-end dividends [4][6] Group 3: Future Dividend Plans - Several banks are already planning for mid-term dividends for 2025, indicating a proactive approach to shareholder returns [5][6] - The regulatory environment encourages banks to enhance cash dividend levels and frequency, aiming to improve investor satisfaction and confidence [6][8] Group 4: Dividend Ratios and Trends - Approximately 70% of listed banks have a dividend payout ratio exceeding 20%, with 11 banks surpassing 30%, led by China Merchants Bank at 33.99% [7] - Some banks have shown significant increases in their dividend ratios, with Xi'an Bank's ratio rising from 10.11% to 17.37%, a notable increase of 7.26 percentage points [7] Group 5: Policy and Economic Context - The China Securities Regulatory Commission has issued guidelines to promote regular cash dividends, aiming to stabilize investor expectations [8] - High dividend ratios reflect banks' strong profitability and capital adequacy, indicating confidence in future growth [8][9]

Market Overview - The A-share market showed mixed results on July 7, with the Shanghai Composite Index closing at 3473.13 points, up 0.02%, while the Shenzhen Component Index fell by 0.7% to 10435.51 points. The ChiNext Index decreased by 1.21% to 2130.19 points, and the North Star 50 Index dropped by 0.93%. Total trading volume in the A-share market was 12272.11 billion, a decrease of 2274.88 billion from the previous trading day [1]. Capital Flow - The main capital in the A-share market experienced a net outflow of 140.42 billion, with an opening net outflow of 86.67 billion and a closing net outflow of 9.72 billion [2]. - The CSI 300 index saw a net outflow of 43.46 billion, while the ChiNext experienced a net outflow of 92.68 billion. Conversely, the Sci-Tech Innovation Board recorded a net inflow of 3.55 billion [4]. Sector Performance - Among the 12 sectors in the Shenwan first-level industry classification, 12 sectors saw net capital inflows, with the public utilities sector leading with a net inflow of 35.12 billion [6]. - The top five sectors with net capital inflows included: - Public Utilities: 35.12 billion, up 3.21% - Real Estate: 25.82 billion, up 1.86% - Construction Decoration: 12.20 billion, up 1.04% - Electric Equipment: 8.42 billion, up 1.25% - Environmental Protection: 6.68 billion, up 0.86% [7]. Institutional Activity - The institutional buying activity was notable in several stocks, with Qingdao Kingking leading with a net inflow of 6.41 billion [8]. - The top stocks with institutional net buying included: - Qingdao Kingking: 9449.43 million, up 9.99% - Yihua New Materials: 4887.98 million, down 8.59% - Haoshanghao: 3158.16 million, down 5.14% [10]. Institutional Focus - Recent institutional attention was directed towards several stocks, with notable ratings and target prices: - Ruantong Power: Buy rating, target price 66.97, current price 51.90, upside potential 29.04% - Wuxi Zhenhua: Buy rating, target price 37.03, current price 32.75, upside potential 13.07% - Dize Pharmaceutical-U: Buy rating, target price 89.42, current price 64.71, upside potential 38.19% [11].

Regulatory Dynamics - Zeng Linfeng has officially taken office as the Director of the Beijing Local Financial Supervision Administration [1] Industry Dynamics - The A-share banking sector has seen a market capitalization increase of over 2 trillion yuan this year, with the Shenwan Banking Index rising by 17.26% as of July 3 [2][3] - The Banker magazine's 2025 Global Bank 1000 list revealed that 21 Chinese banks made it into the top 100, with six in the top 10, including ICBC, CCB, ABC, and BOC [2] - Insurance capital has made 19 equity stakes this year, with recent investments in Jiangnan Water and Hualing Steel [3][5] Corporate Dynamics - China Merchants Bank has received approval to establish its financial asset investment company with a registered capital of 15 billion yuan [6] - JiuTai Rural Commercial Bank is set to apply for delisting as Jilin Financial Holdings plans to make a cash offer for all issued H shares and domestic shares [6] - Hongta Bank has appointed Hu Wenjian as its new leader after an 18-month vacancy [7] - Ant Group plans to invest 23.45 billion yuan in R&D in 2024, focusing on AI applications across various sectors [8] - Longyin Consumer Finance is facing a shareholding crisis, with nearly half of its shares frozen due to legal issues [8] - JD Finance has launched a new service called "White Bar Paid Quota" to enhance its consumer finance offerings [10] - The Shanghai Gold Exchange has welcomed Taikang Life as a member, indicating a growing trend of insurance capital entering the gold market [10] - The Netherlands-based global insurance group has received approval to establish a new asset management company, indicating its expansion into the insurance sector [11]

证券简称: 南 京 银 行 证券代码: 601009 编号: 2025-046 优先股简称：南银优 1 优先股代码：360019 ? 赎回款发放日：2025 年 7 月 18 日 南银优 2 360024 可转债简称：南银转债 可转债代码：113050 南 京 银 行股份有限公司 关于实施"南银转债"赎回暨摘牌的 第十五次提示性公告 特别提示： 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或 者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： ? 赎回登记日：2025 年 7 月 17 日 ? 赎回价格：100.1537 元/张 ? 最后交易日：2025 年 7 月 14 日 截至 2025 年 7 月 7 日收市后，距离 2025 年 7 月 14 日（"南银转债"最后交易 日）仅剩 5 个交易日，2025 年 7 月 14 日为"南银转债"最后一个交易日。 ? 最后转股日：2025 年 7 月 17 日 截至 2025 年 7 月 7 日收市后，距离 2025 年 7 月 17 日（"南银转债"最后转股 日）仅剩 8 个交易日，2025 年 7 月 17 日 ...

| 证券简称: | 南京银行 | 证券代码: | 601009 | 编号: | 2025-046 | | --- | --- | --- | --- | --- | --- | | 优先股简称：南银优 | 1 | | | 优先股代码：360019 | | | 南银优 | 2 | | | 360024 | | | 可转债简称：南银转债 | | | | 可转债代码：113050 | | 特别提示： 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或 者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 南京银行股份有限公司 关于实施"南银转债"赎回暨摘牌的 第十五次提示性公告 重要内容提示： 截至 2025 年 7 月 7 日收市后，距离 2025 年 7 月 14 日（"南银转债"最后交易 日）仅剩 5 个交易日，2025 年 7 月 14 日为"南银转债"最后一个交易日。 最后转股日：2025 年 7 月 17 日 截至 2025 年 7 月 7 日收市后，距离 2025 年 7 月 17 日（"南银转债"最后转股 日）仅剩 8 个交易日，2025 年 7 月 17 日为"南银转债" ...

Core Viewpoint - The bank convertible bond market is experiencing a significant reduction in the number of available bonds, with only 9 remaining after several have been redeemed or matured, indicating a shrinking market size and potential changes in investment strategies [1][6]. Group 1: Convertible Bonds Redemption - Qilu Bank's convertible bond has triggered a conditional redemption clause due to its stock price exceeding 130% of the conversion price for 15 out of 30 trading days, leading to an early redemption three and a half years before maturity [2]. - The total issuance of Qilu convertible bonds was 8 billion yuan, with a conversion price currently at 5.00 yuan per share, and 2.66 billion yuan worth of bonds converted into shares as of June 30, 2025 [2]. - Hangzhou Bank's convertible bond has also been redeemed, with a total conversion amount reaching 14.908 billion yuan, representing 99.39% of the total issuance [3]. Group 2: Market Trends and Performance - The continuous rise in bank stock prices has led to a 17.7% increase in the China Securities Bank Index this year, with all 42 stocks in the sector showing positive performance [4]. - Five banks have seen stock price increases exceeding 30%, with Shanghai Pudong Development Bank leading at a 41.69% increase [4]. - The market for bank convertible bonds is shrinking, with the total balance dropping from nearly 300 billion yuan to below 150 billion yuan, and market share decreasing from 40% to approximately 20% [6]. Group 3: Investment Strategies and Market Dynamics - The ongoing reduction in the supply of bank convertible bonds is altering market structure and triggering a shift in investment strategies, with institutional investors reducing their allocations to these bonds [6]. - As the supply of bank convertible bonds diminishes, funds are seeking alternative high-yield assets or other convertible bonds to fill the gap, leading to a divergence in allocation strategies among different types of funds [6].

Report Industry Investment Rating No relevant content provided. Core Viewpoints - The balance of bank convertible bonds may shrink by approximately 10 billion yuan this year, and by the end of 2025, it may be around 9 billion yuan. If other commercial banks can follow the example of state - owned banks' low - PB private placements, there may be a possibility of supplementary supply of bank convertible bonds [3][4]. - The replacement bottom - position varieties should have the characteristics of high rating, low volatility, and high capital capacity. It is recommended to pay attention to AAA - rated convertible bonds in non - banking finance and general public utilities for low - volatility and high - rating, and photovoltaic equipment and pig - breeding convertible bonds for large capital capacity [3][40]. - For photovoltaic equipment convertible bonds, it is recommended to screen leading individual bonds and leave room for rating downgrades. When the convertible bond price is low, gradually build a position [2][22]. Summary by Relevant Catalogs 1. The balance of bank convertible bonds may shrink by about 10 billion yuan this year - As of June 30, 2025, there were 10 bank convertible bonds in the market, with a balance of 13.49 billion yuan, a decrease of 7 bonds and 11.1 billion yuan compared with the end of 2023. If the relevant convertible bonds are all delisted, the balance of bank convertible bonds will further shrink by 10.13 billion yuan to 8.98 billion yuan by the end of 2025 compared with the end of 2024 [4]. - The shrinkage of bank convertible bond scale may be irreversible in the short term. It is necessary to observe the progress of bank capital replenishment. Currently, the policy supports state - owned large - scale banks to replenish core tier - one capital. This year, the private placement prices of four state - owned big banks were lower than 1 - time PB, about 0.7 - time PB. There are bank convertible bonds totaling 2.9 billion yuan that have been announced but not issued, and the current PB multiples of the underlying stocks are between 0.5 - 0.7 times [4]. 2. The replacement bottom - position varieties should have three characteristics: high rating, low volatility, and high capital capacity - Before 2024, bank convertible bonds mainly served as bottom - position allocation varieties, with limited contribution to returns. Since 2024, due to the strengthening of the dividend style, bank convertible bonds have advantages in both returns and volatility. After bank convertible bonds exit the market, investors may return to the pre - 2024 investment model, and the difficulty of participation has increased. Some investors may leave the convertible bond market [13]. - The replacement bottom - position varieties should have high rating, low volatility, and high capital capacity. Configuration is the primary function, and individual bond elastic returns are a by - product [13]. 3. Low - volatility and high - rating: AAA - rated convertible bonds in non - banking finance and general public utilities - As of June 30, there were 4 non - banking finance convertible bonds, with 3 AAA - rated ones having a total scale of 1.46 billion yuan. They belong to the same large - finance industry as bank convertible bonds, with low risks of underlying stock delisting and credit default. After a sharp rise, it is not recommended to chase the high. When the convertible bond price returns to around 110 - 115 yuan, it may be a good bottom - position allocation buying point [17]. - The so - called "general public utilities" include public utilities and transportation. There are 3 AAA - rated convertible bonds in this sector, with a balance of 1 billion yuan. The advantage is a long remaining term, and the disadvantage is a relatively high current convertible bond price and insufficient defense against underlying stock decline [18][20]. 4. Large capital capacity: Photovoltaic equipment and pig - breeding convertible bonds - Photovoltaic equipment and pig - breeding are both strong - cycle industries. The current balance of photovoltaic equipment convertible bonds is 6.08 billion yuan, and the balance of pig - breeding convertible bonds is 2.72 billion yuan. The photovoltaic equipment sector's net profit turned negative in 2024, and the pig - breeding sector may have passed the most difficult period, but the pig price has been falling since August 2024 [21]. - The advantages of photovoltaic equipment convertible bonds are low prices and high capital accommodation. It is recommended to screen leading individual bonds and leave room for rating downgrades. The advantage of pig - breeding convertible bonds is mainly large capital capacity, and it is necessary to pay attention to the marginal changes in the pig price [22].

Group 1 - The core point of the article highlights the unexpected success of the Suzhou Super League (苏超), which has gained immense popularity, achieving 7 billion views on Douyin and attracting 36,000 attendees at a home match in Changzhou, with ticket demand reaching 1.44 million for a match between Suzhou and Yangzhou [1][3] - Jiangsu Bank, as the title sponsor, invested 8 million yuan, resulting in significant brand exposure across the stadium, leading to a perceived return of 800 million yuan in value [1] - The average attendance for the Suzhou Super League exceeds 20,000, while the Chinese Super League (中超) struggles to reach similar numbers, with sponsorship fees for the latter starting at 100 million yuan [1] Group 2 - Jiangsu Bank's financial strength is underscored by its total assets of 4.46 trillion yuan, ranking second among city commercial banks in China, and a net profit of 31.8 billion yuan, placing it in the top tier of listed banks in terms of growth [1][2] - The competitive landscape in Jiangsu's banking sector is intense, with 9 out of 42 A-share listed banks located in the province, including Jiangsu Bank, Nanjing Bank, and Suzhou Bank [2] - The economic environment in Jiangsu is robust, with total resident deposits nearing 27 trillion yuan, and cities like Suzhou and Wuxi showcasing impressive industrial output and GDP figures, contributing to the region's banking success [2]

Investment Rating - The report maintains an "Overweight" rating for the banking sector [2] Core Insights - The banking sector is transitioning from a "pro-cyclical" model to a "weak cyclical" model, indicating a shift in operational dynamics [2][4] - The report emphasizes the stability of bank dividend yields, which are expected to remain attractive even as risk-free interest rates decline [2][4] - The influx of non-freely circulating funds, such as from state-owned enterprises and insurance capital, is expected to provide a stable source of investment in bank stocks [2][4] Summary by Sections From the Perspective of Risk-Free Interest Rates - Bank dividend yields are characterized by strong certainty and sustainability, with interest margins expected to decline more slowly than risk-free rates [5][12] - The correlation between banks and fiscal policies has strengthened, providing a safety net for core assets [12] - If risk-free interest rates decline, the attractiveness of stable bank dividends will increase, especially in a context of economic weak recovery and asset scarcity [8][18] From the Perspective of Funding Allocation to Bank Stocks - Major funding sources for bank stocks include non-freely circulating funds from fiscal authorities, state-owned enterprises, and insurance capital [5][12] - Non-freely circulating market capitalization accounts for approximately 70% of the banking sector, providing a stabilizing effect [5][12] - Insurance capital is projected to significantly increase its allocation to bank stocks, with an estimated annual inflow exceeding 350 billion [5][12] Investment Recommendations - The report continues to recommend the banking sector, particularly focusing on banks with regional advantages and strong dividend yields [4][12] - Specific recommendations include regional banks in areas like Jiangsu, Shanghai, and Chengdu, as well as major banks such as Agricultural Bank of China, China Construction Bank, and Industrial and Commercial Bank of China [4][12]