Core Viewpoint - The newly issued "Market Risk Management Measures" by the National Financial Regulatory Administration represents a significant update to market risk management requirements in China, enhancing the framework established in 2004 and addressing the evolving financial landscape [1][2]. Group 1: Regulatory Updates - The "Measures" provide clearer risk boundaries, stricter governance requirements, and a more systematic management process to help banks manage market risks during extreme market conditions [1]. - The evolution of market risk management in China has progressed through several key regulations since 2004, culminating in the 2025 "Measures" which refine the governance structure and enhance operational resilience in market risk management [2]. Group 2: Governance Responsibilities - The "Measures" clarify the responsibilities of the board of directors, supervisory board, and senior management in market risk management, establishing a clear delineation of duties across three lines of defense [2]. - Banks are required to strengthen market risk management at the group level, ensuring that all subsidiaries align with the group's risk appetite and regulatory requirements [3]. Group 3: Market Risk Management Framework - The "Measures" mandate a comprehensive and refined approach to market risk management, emphasizing six key areas: scope redefinition, governance upgrades, consolidated reporting, data and valuation, stress scenarios, and model validation [4]. - Large and medium-sized banks with established market risk management systems are encouraged to conduct gap analyses against the "Measures" to ensure compliance, while smaller banks are advised to develop lightweight organizational structures tailored to their specific risk profiles [4]. Group 4: Integration with Global Standards - Domestic regulatory bodies are actively integrating into the global capital regulatory framework, prompting banks to enhance their capital measurement frameworks and risk model systems [4]. - Banks are focusing on building robust model risk management systems that ensure effective governance, lifecycle management, and technological empowerment, creating a closed-loop information support platform for model development and business application [4].

Market Performance - A-shares experienced a collective adjustment on June 20, 2025, with the Shanghai Composite Index closing at 3359.90 points, down 0.07%, the Shenzhen Component Index at 10005.03 points, down 0.47%, and the ChiNext Index at 2009.89 points, down 0.84% [2] - Hong Kong's three major indices closed in the green, with the Hang Seng Index and the Hang Seng China Enterprises Index performing well [2] - U.S. stock indices showed mixed results, with the S&P 500 Index up 1.59% to 5954.5 points, the Nasdaq Composite Index up 1.63% to 18847.28 points, and the Dow Jones Industrial Average up 1.39% to 43840.91 points [2] Regulatory Developments - The National Financial Regulatory Administration issued the revised "Market Risk Management Measures for Commercial Banks," focusing on risks from adverse changes in interest rates, exchange rates, stock prices, and commodity prices, excluding bank book interest rate risk [3] - The revised measures consist of five chapters and forty-three articles, emphasizing the need for a robust market risk governance structure and detailed management requirements [3] Quality Supervision - The State Administration for Market Regulation announced a nationwide quality supervision and sampling inspection for 164 products in 2025, with a total of over 16,000 batches to be sampled [4] - The inspection will focus on children's products, with increased sampling for power banks, electric bicycles, and gas appliances, as well as emerging industries like power batteries and drones [4] Cross-Border Payment - The launch of the Cross-Border Payment System marks the successful interconnection of financial infrastructures between mainland China and Hong Kong, facilitating real-time cross-border remittances [4] - This development is expected to enhance the efficiency and service level of cross-border payments, benefiting trade and personnel exchanges between the two regions [4]

Investment Rating - The report maintains a "Recommended" investment rating for the banking sector, expecting the industry index to outperform the benchmark index by over 5% in the next 3-6 months [24]. Core Insights - The new market risk regulations enhance operational efficiency for banks and establish a solid foundation for future business development [4]. - The regulations clarify the definition of market risk, separating it from interest rate risk, and emphasize the need for improved governance structures and responsibilities among the board, supervisors, and senior management [2][3]. - The report highlights the importance of the new regulations in strengthening banks' risk management capabilities amid increasing complexity in domestic and global trade [4]. Summary by Sections Market Risk Definition and Governance - The new regulations define market risk more rigorously, focusing on risks from adverse changes in interest rates, exchange rates, stock prices, and commodity prices [2]. - The governance structure is refined, specifying the responsibilities of the board, supervisors, and senior management in market risk management [3]. Market Risk Management Requirements - The report details enhanced requirements for risk identification, measurement, monitoring, control, and reporting, aligning with current market practices [3]. - Stricter requirements for the segregation of trading and non-trading activities are introduced, ensuring clearer roles and responsibilities [3]. Investment Opportunities - The report suggests that the banking sector is poised for increased capital inflows due to medium to long-term investments and public fund reforms, recommending a diversified investment strategy focusing on state-owned banks and quality regional banks [9]. - It emphasizes the potential for absolute returns in banks with high dividend yields and strong asset quality, particularly recommending banks like China Merchants Bank and CITIC Bank [9][10].

Core Viewpoint - The National Financial Supervision Administration has issued the "Market Risk Management Measures for Commercial Banks," which introduces new requirements for market risk management in commercial banks, replacing the previous guidelines from 2004 [1][2]. Group 1: Definition and Framework - The new measures redefine market risk, focusing on losses from adverse changes in market prices such as interest rates, exchange rates, stock prices, and commodity prices, excluding bank book interest rate risk [1]. - The measures consist of five chapters and forty-three articles, detailing the governance structure and management requirements for market risk [1][2]. Group 2: Governance Structure - The measures strengthen the governance framework for market risk, assigning clear responsibilities to the board of directors, supervisory board, and senior management [2]. - The board of directors is tasked with treating market risk as a primary risk and ensuring a corresponding risk culture is established [2]. Group 3: Risk Management Process - The measures require banks to implement comprehensive management of market risk, detailing processes for risk identification, measurement, monitoring, control, and reporting [2]. - There is an emphasis on improving internal model definitions, model management, and stress testing requirements to align with current market risk measurement frameworks [2]. Group 4: Implementation and Oversight - The National Financial Supervision Administration will enhance supervision and guidance to ensure the effective implementation of the new measures, aiming to improve banks' market risk management capabilities [2].

Core Viewpoint - The Financial Regulatory Administration has released the revised "Measures for Market Risk Management of Commercial Banks," focusing on risks related to interest rates, exchange rates, stock prices, and commodity prices, while excluding bank book interest rate risks [1][2]. Group 1: Definition and Scope - The revised measures clarify the definition of market risk and specify the applicable scope, excluding bank book interest rate risks, thereby enhancing alignment with other regulations such as the "Measures for Capital Management of Commercial Banks" [1]. - The measures aim to help banks better understand the relationship between market risk and bank book interest rate risk, reinforcing market risk management awareness [2]. Group 2: Governance Structure - The measures emphasize the need to improve the market risk governance structure, clearly defining the responsibilities of the board of directors, supervisory board, and senior management, and outlining the specific roles and responsibilities of the three lines of defense [1]. - The revised framework encourages banks to strengthen market risk management at the group consolidation level [1]. Group 3: Management Requirements - The measures detail the requirements for comprehensive market risk management, including risk identification, measurement, monitoring, control, and reporting [1]. - There is a focus on enhancing internal model definitions, model management, and stress testing requirements to align with current market risk measurement frameworks and management practices [1]. - The measures are expected to help banks optimize their market risk governance structure and policy procedures, improve risk appetite and limit systems, and strengthen internal controls and audits [2].

Domestic News - The Financial Supervision Administration has allowed currency brokerage firms to provide matching services for financial institutions in markets such as currency, bonds, foreign exchange, and gold [5] - The Ministry of Finance reported that from January to May, the national general public budget revenue was 96,623 billion yuan, a year-on-year decrease of 0.3%; stamp duty revenue was 1,787 billion yuan, a year-on-year increase of 18.8% [6] - The National Medical Products Administration has approved measures to optimize the full lifecycle supervision to support the innovation and development of high-end medical devices [6] International News - Preliminary reports indicate that Iranian missiles have struck Tel Aviv, Negev, and Haifa, with approximately 25 ballistic missiles launched from Iran to Israel during the latest round of attacks [3] - The People's Bank of China and the Hong Kong Monetary Authority announced that the cross-border payment system will be operational starting June 22 [4] - The Ministry of Commerce reported that from January to May, the actual use of foreign capital in the country was 358.19 billion yuan, a year-on-year decrease of 13.2% [4] - The Financial Supervision Administration released the "Market Risk Management Measures for Commercial Banks," detailing market risk management requirements [4]

Core Viewpoint - The Financial Supervision and Administration Bureau has issued guidelines stating that the compensation of personnel responsible for market risk management in commercial banks should not be linked to direct operating profits [1] Group 1: Compensation and Incentives - Commercial banks are required to avoid conflicts of interest between their compensation systems and the objectives of market risk management [1] - The board of directors and senior management should ensure that the compensation structure does not encourage excessive risk-taking behavior [1] - Performance evaluations should focus on long-term operational risks rather than being overly concentrated on short-term profit performance [1] Group 2: Market Risk Management - The guidelines emphasize the importance of aligning risk management practices with compensation to prevent negative effects on risk-taking [1] - The compensation of staff responsible for market risk management should be independent of direct operating income [1]

金十数据6月20日讯，金融监督管理总局关于印发《商业银行市场风险管理办法》，办法提到，市场风 险管理政策和程序应当纳入全面风险管理框架，原则上适用于具有独立法人地位的境内外附属机构。商 业银行应当充分认识到附属机构之间存在的法律差异和资金流动障碍，并对其风险管理政策和程序进行 相应调整，审慎处理具有法律差异和资金流动障碍的附属机构之间头寸的抵消，避免造成对市场风险的 低估。 金融监督管理总局：市场风险管理政策和程序应当纳入全面风险管理框架 ...

在2025上海衍生品市场论坛利率类衍生品分论坛上，中金所副总经理刘绍统介绍，在市场风险管理需求 带动下，国债期货成交持仓规模稳步扩大。1月-4月，国债期货日均成交31.7万手，同比增长45.7%；日 均持仓58.1万手，同比增长23.3%。同时，国债期货与对应现货的价格联动紧密，相关性保持在99%以 上，基差运行在合理区间，为投资者开展风险对冲提供了良好条件。 ...

Group 1: Sales and Cost Management - Sales expenses increased in 2024 primarily due to rising LNG storage costs, with measures planned to control these expenses and improve cost-effectiveness [1] - The company aims to establish a dynamic balance mechanism for cost control and market expansion to enhance the return on sales expenses [2] Group 2: Market Trends and Strategic Adaptation - The LNG market is expected to see significant growth from 2025 to 2026 due to multiple new supply projects and increasing demand driven by environmental policies and industrial growth [2] - The company plans to optimize its clean energy supply and service models, expand customer resources, and enhance LNG transportation capabilities to strengthen its market position [2] Group 3: Procurement and Risk Management - The company is actively seeking price differences in domestic and international LNG markets to enhance procurement channels and mitigate risks associated with price fluctuations [3] - In 2024, the Singapore subsidiary completed two LNG ship cargo transactions, generating revenue of CNY 656 million, contributing to stable LNG resource acquisition [3] Group 4: Hedging Strategies - The company employs hedging strategies through its Singapore subsidiary to manage price volatility and ensure stable profitability [4] - Adjustments to hedging strategies will be made based on market conditions to optimize resource trade flows and achieve risk management goals [4] Group 5: Competitive Positioning - The company is developing a comprehensive LNG business chain, including transportation, wholesale trade, and retail, to enhance competitiveness against traditional energy sources [5] - Plans include expanding retail operations through the development of LNG refueling stations and leveraging data analytics to improve sales capabilities [5]