Investment Rating - The industry investment rating is "Positive" (maintained) [2] Core Viewpoints - The report highlights a seasonal recovery in credit and an initial trend towards the "liquefaction" of deposits, driven by short-term loans and market sentiment [6][10] - The banking sector is expected to maintain stable operating performance in 2025, supported by optimized asset-liability structures and controlled retail risks [10] Summary by Sections Deposit and Loan Trends - Non-bank deposits from large banks saw a rare high increase of 2.6 trillion yuan in April-May, but decreased by 184.1 billion yuan in June, reflecting seasonal characteristics [5] - Large banks' savings deposits increased significantly, with a net addition of 1.39 trillion yuan in June, driven by lower long-term deposit rates and improved market sentiment [6] - Small and medium-sized banks experienced a notable contraction in time deposits and high-interest deposits, impacting their ability to allocate bonds [7] Asset Management - Large banks continued to show characteristics of short-term loan volume, with a significant increase in bond investments, indicating their role in supporting government debt [8] - The report notes that the banking sector is entering a critical phase of stable interest margins, with potential mismatches in duration due to low interest rates [9] Investment Recommendations - The report suggests a re-evaluation of value in the low-interest-rate era, emphasizing the scarcity of stable dividend attributes in banks [10] - Beneficiary stocks include Agricultural Bank of China, China Merchants Bank, CITIC Bank, and Bank of Beijing [10]