Core Viewpoint - Industrial Bank is actively pursuing international expansion as a strategic priority, focusing on enhancing its organizational structure and developing comprehensive cross-border financial services [1] Group 1: Organizational Structure - The bank has established a strategic working group at the headquarters level to promote international business development from top to bottom [1] - In overseas markets, the Hong Kong branch serves as a key hub for international business, while 17 domestic branches are designated as main players in international operations [1] - The bank has received approval to establish six free trade zone branches to serve as offshore financial service platforms [1] Group 2: International Business Development - In corporate finance, the bank aims to build a comprehensive cross-border financial service system centered on "commercial banking + investment banking," covering areas such as cross-border investment and financing, global wealth management, FICC, and cross-border settlement [1] - The bank plans to expand its network of correspondent banks and enhance cooperation in regions related to the Belt and Road Initiative, focusing on multi-currency product combinations and improving overseas asset investment capabilities [1] - Retail financial services are tailored for tourists and business personnel visiting China, offering localized and comprehensive financial support [1] Group 3: Brand and Service Integration - The bank is committed to refining its operational system and rebranding its global services, integrating diverse resources from both domestic and international markets [1] - A one-stop comprehensive cross-border financial service is being launched for clients with cross-border financial service needs [1]

Industry Investment Rating - The industry investment rating is Neutral, maintained [2] Core Insights - The report indicates that the stock-bond spread is expected to fluctuate within a neutral range, lacking strong momentum for unilateral expansion or convergence, with the stock relative value not being prominent [5][9] - The bond trading volume has surged from an average of 2 trillion yuan at the beginning of 2024 to 3 trillion yuan in 2025, marking a shift from a "configuration market" to a "trading market" [5] - The report anticipates that the top brokers' FICC non-directional profit trading capabilities will become increasingly important in 2026 [5] Summary by Sections 1. Industry Fundamentals Tracking - The Shibor 3M rate is expected to remain at historical low levels in 2026, with a central estimate between 1.4% and 1.8%, primarily fluctuating around 1.6% [6][17] - The A-share market's stock fund trading volume is projected to enter a new phase of moderate growth, with daily average trading expected to range from 2.2 trillion to 3.2 trillion yuan, achieving a central estimate of 2.6 trillion to 2.8 trillion yuan [7][21] - The margin financing market is expected to transition from a "high-speed expansion period" in 2025 to a "high-quality growth period" in 2026, with balances projected to range from 2.6 trillion to 3.2 trillion yuan [23][24] - The bond market is expected to maintain high trading volumes, with daily average trading estimated between 2.5 trillion and 3.0 trillion yuan [8][28] - The stock-bond spread is anticipated to continue its "high volatility" pattern, with an expected range of 4.0% to 6.0% for 2026 [9][31] 2. Market Review - The A-share Shenwan Securities II industry index decreased by 0.29%, underperforming the CSI 300 index by 0.20 percentage points [33] - The securities II index has only increased by 2.59% compared to a 17.66% increase in the CSI 300 index over the past year [33] - In the Hong Kong market, the securities and brokerage sector ranked first, with a gain of 0.714%, outperforming the overall financial sector [34]

Group 1: Financial Performance - In Q1 2025, the company achieved a consolidated revenue of CNY 5.479 billion and a net profit of CNY 2.247 billion, representing a year-on-year growth of 35.62% [2] - The wholly-owned subsidiary, Shenwan Hongyuan Securities, reported a net profit attributable to shareholders of CNY 2.206 billion, with a year-on-year increase of 36.76% [2] - Investment income and fair value changes totaled CNY 3.335 billion, reflecting a growth of 13.95% year-on-year [2] - The net income from brokerage services increased by 28.83%, while investment banking fees surged by 79.40% [2] Group 2: International Business Development - The company has established a comprehensive overseas business platform centered in Hong Kong, expanding its services to surrounding overseas markets [3] - In 2024, the company participated in 15 IPO underwriting projects, ranking 6th among Chinese securities firms, and completed 312 overseas bond projects, ranking 5th in offshore bond underwriting [3] - The company is enhancing its cross-border business capabilities to meet investor needs for cross-border investment and risk management [3] Group 3: Derivative Products and Future Plans - The company is focused on enhancing its core competencies in risk pricing, strategy development, and financial technology within its derivative business [4] - Future plans include developing equity capital intermediary services centered on client needs, particularly in risk management and asset allocation [4] Group 4: Asset Allocation Strategy - The company aims to respond to central government policies by maintaining market stability and supporting the real economy [5] - Key areas of focus include strengthening FICC asset allocation, enhancing research capabilities, and exploring opportunities in derivative products and cross-border transactions [6] - The company plans to improve its credit business competitiveness and support client financing needs through stable development of stock pledge repurchase and agreed repurchase businesses [6] Group 5: Wealth Management Highlights - The company is committed to a customer-centric approach, enhancing service capabilities and optimizing investment advisory services [6] - In Q1, the net income from brokerage services increased by 28.83%, with a steady rise in new account openings and margin financing balances [6]