Core Viewpoint - The Chinese financial industry is undergoing a profound transformation driven by new regulatory measures aimed at tightening monetary policy and mitigating systemic financial risks, particularly in the areas of internet lending and shadow banking [1][4]. Group 1: Regulatory Changes - The People's Bank of China (PBOC) issued guidelines on July 15 to strengthen financial risk prevention, marking a new phase of tightened monetary policy [1]. - New regulations significantly increase the required contribution of banks in joint lending from 30% to 70%, effectively reducing the leverage of internet platforms [2]. - The regulations also target shadow banking, which had a scale of approximately 25.3 trillion yuan at the end of 2024, accounting for 19.7% of GDP [4]. Group 2: Impact on Financial Institutions - Major banks like Industrial and Commercial Bank of China (ICBC) and China Construction Bank are adjusting their strategies, with ICBC halting joint lending with 10 internet platforms [2]. - Smaller banks are particularly affected, with internet loan income constituting an average of 17.3% of their operating revenue, and some exceeding 30% [5]. - Banks are responding by tightening their investment in non-standard assets and focusing on compliance and risk management [4][5]. Group 3: Long-term Outlook - The adjustments are expected to lead to a healthier and more sustainable financial ecosystem, with improved transparency in fund flows and more reasonable risk pricing [5]. - Analysts predict that the overall non-performing loan ratio in the banking sector will decrease to around 1.2% by 2026 following the adjustment period [5]. - The regulatory changes are part of a broader systemic effort to reduce financial leverage and prevent risks, with 23 significant policy documents issued since 2021 [4][5]. Group 4: Balancing Act - The new regulations reflect the regulatory authorities' commitment to balancing financial openness with risk prevention amid increasing global economic uncertainties [7]. - The adjustment process is expected to be ongoing, requiring adaptation from all market participants [7].

Core Points - The board of directors of Zheshang Bank held its fifth temporary meeting of the seventh session on June 20, 2025, and approved two key proposals [1][2] - The first proposal was the approval of the 2025 Internet Loan Business Development Plan, which received unanimous support from all participating directors [1] - The second proposal involved a capital increase in the affiliated company Zhejiang Zhiyin Financial Leasing Co., Ltd., which was approved with 11 votes in favor, while one related director abstained from voting [1][2] Proposal Details - The Internet Loan Business Development Plan aims to enhance the bank's strategic growth in the digital lending sector, aligning with its core business [1] - The capital increase in Zhejiang Zhiyin Financial Leasing is deemed necessary for the strategic development of Zheshang Bank and is consistent with its main business operations [2] - Independent directors confirmed that the related transaction adheres to principles of fairness and does not harm the interests of Zheshang Bank or its shareholders, particularly minority shareholders [2]