Core Insights - Shanghai Pudong Development Bank (SPDB) reported a revenue of 132.28 billion yuan for the first three quarters of 2025, a year-on-year increase of 1.88%, and a net profit attributable to shareholders of 38.82 billion yuan, up 10.21% year-on-year [1] - The bank's total assets reached 9.89 trillion yuan, growing by 4.55% compared to the end of the previous year, with total loans (including bill discounting) amounting to 5.67 trillion yuan, an increase of 280.6 billion yuan or 5.20% [1] - The asset quality improved, with non-performing loans (NPL) decreasing to 72.89 billion yuan, resulting in an NPL ratio of 1.29%, down 0.07 percentage points from the end of the previous year [1] Financial Performance - SPDB's cost-to-income ratio stood at 27.53% [1] - The average daily interest-earning assets in the parent company saw an increase in the proportion of loans (excluding bill discounting) by approximately 2.58 percentage points year-on-year [1] - Total liabilities reached 9.05 trillion yuan, a growth of 3.83% from the end of the previous year, with total deposits amounting to 5.621 trillion yuan, up 9.19% [1] Business Development - The bank focused on key sectors and regions, enhancing its "digital and scenario-based" development capabilities, with significant growth in technology finance, serving over 250,000 technology enterprises and achieving a technology finance loan balance exceeding 1 trillion yuan [2] - Supply chain finance showed robust growth, with the bank serving 32,700 supply chain customers, a 72.91% increase, and online supply chain business volume reaching 574.86 billion yuan, up 267.65% [2] - Green finance services were strengthened, with a green credit balance of 700.24 billion yuan, a 22.70% increase, and carbon reduction loans amounting to 27.36 billion yuan [2] Specialized Services - SPDB contributed to the construction of Shanghai as an international financial center by enhancing investment and trading capabilities, launching approximately 40 first-of-their-kind market products in the first three quarters [3] - The bank's merger and acquisition (M&A) loan balance reached 237.8 billion yuan, a 14.53% increase, with new M&A loans issued amounting to 83.4 billion yuan, up 33.33% [3] - The bank maintained a leading position in risk hedging services, serving over 23,000 corporate clients with hedging transaction volumes exceeding 750 billion yuan, a growth of over 50% [3]

Core Viewpoint - The article discusses the strategic development and success of the FICC team at Ping An Bank, highlighting its evolution from a nascent group to a leading market player in bond market making and liquidity provision in China [3][6][26]. Group 1: Strategic Development - The FICC team was established in 2015 with a long-term vision to develop a sophisticated trading and risk management system tailored for the Chinese market [2][3]. - The team recognized the impending decline in bond yields and the need for advanced trading strategies, positioning itself to fill the gap left by other institutions that were complacent with higher yields [2][3]. - Over ten years, the FICC team has become the most active trading team in the market, significantly contributing to liquidity and innovating the issuance and trading of Panda bonds [3][26]. Group 2: Market Evolution - The bond market in China has transformed, with the total bond custody balance increasing from 40 trillion yuan to nearly 180 trillion yuan, reflecting a significant rise in market liquidity [7]. - The yield on 10-year government bonds has decreased from 4.3% to 1.73%, necessitating a shift in investment strategies from buy-and-hold to active trading [7][9]. - The demand for market-making services has surged as institutional investors adapt to the changing market environment [9]. Group 3: Service Orientation - The FICC team transitioned from focusing solely on proprietary trading to providing services to a broader market, emphasizing a "customer-first" philosophy [11][13]. - The team has integrated advanced systems and AI technology to enhance trading efficiency, with 80% of customer orders processed automatically [15][18]. - This shift has allowed the team to support various stakeholders, including individuals and institutions, in managing investments and risks effectively [12][13]. Group 4: Market Impact - During market turmoil, the FICC team acted as a stabilizing force, utilizing its pricing models and trading networks to provide liquidity when other institutions paused trading [20][25]. - The team's efforts in market-making for Panda bonds have improved their liquidity and pricing, benefiting both investors and issuers [30][32]. - The FICC team has established itself as a central player in the bond market ecosystem, facilitating better communication and transactions among various market participants [26][37]. Group 5: Future Outlook - The article anticipates a more developed and efficient bond market in China, driven by the FICC team's practices and the increasing participation of global issuers [35][38]. - As the market matures, the relationship between liquidity and bond yields is expected to become more significant, leading to lower financing costs for high-quality issuers [36][38]. - The FICC team aims to continue enhancing the market ecosystem, ultimately benefiting the broader economy and investment landscape in China [38][39].