Core Viewpoint - The competition in the mortgage loan market is intensifying, with banks focusing on improving service and efficiency to attract business, especially among smaller banks that lack the marketing budgets of larger institutions [4][11][12]. Group 1: Market Dynamics - The mortgage loan business is seen as a critical driver for the sustained growth of retail credit by banks [3][4]. - The current competitive landscape is driven by the banks' desire to secure quality credit assets, as mortgage loans have low default rates and stable repayment cycles [4][5]. - Large banks are leveraging partnerships with real estate agencies to secure a stable volume of mortgage loans, while smaller banks are forced to compete on service and efficiency due to limited budgets [5][11]. Group 2: Operational Strategies - Banks are adopting aggressive strategies to enhance their mortgage loan business, including rapid response to loan applications and improving approval times [11][12]. - Some banks are reallocating funds from consumer loans to mortgage loans to boost their mortgage business volume [12][14]. - Smaller banks are also relaxing their loan approval criteria to gain favor with real estate agencies and increase their mortgage loan referrals [14][15]. Group 3: Competitive Pressure - Internal performance metrics and competitive pressures are driving bank employees to work harder to secure mortgage loan business [17][19]. - There is a trend of banks offering kickbacks to real estate agents to increase mortgage loan volumes, despite regulatory risks associated with such practices [20][21]. - The need for differentiation in financial services is emphasized, suggesting that banks should offer tailored products to meet diverse customer needs [21].

Core Viewpoint - The competition in the mortgage loan market among banks is intensifying as they seek to capture quality credit assets, with mortgage loans being viewed as a stable and low-risk option for driving retail credit growth [2][3] Group 1: Market Dynamics - Banks are increasingly focusing on mortgage loans due to the rising risks associated with personal business loans and retail loans, leading to tightened lending standards in those areas [2][3] - The mortgage loan balance of Ping An Bank reached 339.43 billion yuan as of March 2025, reflecting a 4.1% increase from the previous year, while personal business and consumer loans saw declines of approximately 0.3% and 3.2% respectively [3] - The People's Bank of China reported that the personal housing loan balance was 37.74 trillion yuan by the end of Q2 2025, showing a year-on-year decrease of 0.1% but an increase of 510 billion yuan in the first half of the year [3] Group 2: Competitive Strategies - Large state-owned and joint-stock banks are expanding their mortgage loan business through partnerships with real estate agencies, while smaller banks are focusing on service and efficiency to attract business [3][5] - Smaller banks are adjusting their internal funding allocations to ensure sufficient capital for mortgage loans, even reallocating retail consumer loan quotas to support this initiative [7] - Some smaller banks are relaxing their mortgage loan eligibility criteria to gain favor with real estate agencies and increase referral opportunities [7][8] Group 3: Operational Efforts - Banks are implementing measures to enhance the speed of customer response and loan approval processes, aiming to complete the mortgage application to disbursement cycle within two weeks [6] - Customer managers are under pressure to quickly process mortgage applications, with some banks assigning additional staff to assist with documentation and approval processes [6][11] - The competitive environment has led to some banks offering commissions to real estate agents to secure more mortgage business, despite regulatory concerns regarding such practices [12][13] Group 4: Future Outlook - To remain competitive, banks are encouraged to develop differentiated financial services, such as bundled offerings for developers and tailored mortgage products for different customer segments [13]