Investment Rating - The report maintains a "Recommendation" rating for the banking industry [1] Core Insights - The report highlights a decline in bill rates and emphasizes the importance of large maturing certificates of deposit [5][11] - The central bank's actions include a net injection of 656.6 billion yuan through reverse repos, indicating a focus on liquidity management [12][33] - The report anticipates significant pressure on the funding environment in June due to the maturity of over 40 billion yuan in certificates of deposit and 12 billion yuan in reverse repos [12][16] Summary by Sections Industry Scale - The banking sector comprises 41 companies with a total market capitalization of 991.12 billion yuan, representing 11.6% of the market [1] Bill Rates - As of the end of May, the 1-month, 3-month, and 6-month bill rates were 1.1%, 1.16%, and 1.06%, reflecting changes of -8 basis points, +7 basis points, and -3 basis points respectively [11][19] - The net buying of bills by state-owned banks reached 1,537.018 billion yuan, slightly higher than the previous year's figure [11][19] Monetary Policy - The central bank conducted 16.026 billion yuan in 7-day reverse repos at an interest rate of 1.40%, with a net injection of 656.6 billion yuan [12][33] - The report notes that the central bank's reverse repo balance has significantly increased compared to historical levels [12][36] Fiscal Insights - The government bond net financing for the week was 514.104 billion yuan, with expectations of a slight decrease in net payments in the upcoming period [14] Certificates of Deposit - The report indicates that June will see a record maturity of over 40 billion yuan in certificates of deposit, which is the largest single-month maturity in history [16] - The large maturities are expected to impact the stability of the funding environment but will also allow for a shift from unstable to more stable liabilities [16] Commercial Bank Financing - The total bond issuance by commercial banks was 762.2 billion yuan, with a net financing scale of 59.3 billion yuan [17]

Investment Rating - The report maintains a "Recommendation" rating for the banking industry [1] Core Insights - The report highlights a decline in bill rates and emphasizes the importance of large maturing certificates of deposit [5][11] - It notes that the net buying volume of bills by state-owned banks has increased compared to the same period last year, while city commercial banks have seen a significant rebound in net selling [5][11] - The report anticipates a challenging funding environment in June due to substantial maturities of certificates of deposit and reverse repos [5][12] Industry Scale - The banking industry comprises 41 listed companies, with a total market capitalization of 991.12 billion and a circulating market capitalization of 981.93 billion [1] Bill Market Analysis - As of May 30, 2025, the 1-month, 3-month, and 6-month bill rates were 1.1%, 1.16%, and 1.06%, reflecting changes of -8 basis points, +7 basis points, and -3 basis points respectively [11][19] - The cumulative net buying scale of bills for state-owned banks, joint-stock banks, city commercial banks, and rural commercial banks was 15,370.18 billion, 814.94 billion, 3,881.66 billion, and 7,057.95 billion respectively [11][19] Monetary Policy - The central bank conducted a total of 16,026 billion in 7-day reverse repos, achieving a net injection of 6,566 billion [12][33] - The report indicates that the central bank's reverse repo balance has significantly increased compared to historical levels [12][36] Funding Rates - The report states that the funding rates for DR001, DR007, and DR014 were 1.48%, 1.66%, and 1.72% respectively, with slight fluctuations noted [13][38] - It is expected that funding rates may decline in the upcoming period, although various factors could complicate the funding landscape in June [13][18] Government Debt Financing - The report mentions that the government debt net financing for the week was 5,141.04 billion, with expectations for a slight decrease in net payments in the following period [14][38] Certificates of Deposit - The report highlights that June will see a record maturity of over 40,784 billion in certificates of deposit, the largest single-month maturity in history [16][18] - The large maturities are attributed to various factors, including tighter funding conditions in Q1 2025 and regulatory influences [16][18]