China Financials: From deposits to market - prefer brokers and insurance over banks

Research evidence excerpt

China Financials: From deposits to market - prefer brokers and insurance over banks

c) Limited/

Life-H and PingAn-H. On banks, we see limited tailwinds from 2Q earnings; J.P. Morgan Broking (Hong Kong) Limited

rather, the National Audit Office report indicates a potential earnings headwind. Haomin Chen

On the other hand, easing geopolitical risk may lead to fund rotation away from H (86-21) 6106 6347

share banks. haomin.chen@jpmorgan.com

SAC Registration Number: S1730524080002

Key takeaways from financial regulators’ speech in LJZ J.P.LimitedMorgan Securities (China) Company

forum support broker sector Insurance

• Expanding regulated channels for cross-border investments: During his MW Kim AC

speech at the Lujiazui (LJZ) forum, the CSRC chairman Wu Qing reiterated (852) 2800-8517

support for lawful and compliant cross-border investment and financing mw.kim@jpmorgan.com

J.P. Morgan Securities (Asia Pacific) Limited/

activities - he specifically emphasized expanding regulated channels, while J.P. Morgan Broking (Hong Kong) Limited

tightening shadow channels. The Administrator of SAFE echoed these Dan Wang

comments and added that the QDII quota will expand. In our view, onshore (86-21) 6106-6349

brokers are the key winners from the tightening on ODI (outbound investments) dan.wang@jpmorgan.com

for individual investors (link). SAC Registration Number: S1730524080001

J.P. Morgan Securities (China) Company

• Rise in indirect financing and growth in long-term capital to nourish Limited

capital market developments: The PBOC governor reiterated support for Julia Kim

financial market opening and development. He provided some statistics – that (852) 2800-8540

indirect financing has risen to 47% of new total social financing (TSF) in 2025, julia.c.kim@jpmorgan.com