Greater China Banks Daily: First batch of banks’ H126 prelim results point to resilient performance; PBOC adds RMB100bn relending quota for flood-hit agriculture & SMEs

Research evidence excerpt

Greater China Banks Daily: First batch of banks’ H126 prelim results point to resilient performance; PBOC adds RMB100bn relending quota for flood-hit agriculture & SMEs

and Zhejiang, with priority support for SMEs, individually owned businesses, agricultural

firms, aquaculture companies and rural households.

IB highlights stronger focus on shareholder return and market cap management

Industrial Bank (IB) reiterated its constructive view on China’s capital-market outlook

and highlighted a stronger focus on shareholder returns and market cap management.

Management cited four areas of progress: (1) Loan growth and mix upgrades: H126

loan increase exceeded the prior year, with improved mix as technology, green and

manufacturing loans rose 12.98%, 9.63% and 9.58% YTD, respectively; key-industry

loans represented over 45% of new corporate lending; (2) Shareholder returns

increase: Industrial Bank highlighted market-cap management and a more predictable

dividend policy, with its 2025 cash dividend payout ratio at 31.02%, rising for the 16th

consecutive year. In H126, IB saw large and medium-sized insurers and SOEs in Fujian

Province to increase the stake in the bank, indicating medium-to-long-term confidence.

(3) Listed-company services: Listed-company services expanded to 3,788 A-share

listed companies, or c.69% coverage, with nearly RMB10bn deployed through

relending tools for 79 clients. (4) Long-term investment and equity asset

allocation: Equity-linked products at CIB Wealth, CIB Fund and CIB Trust increased by

RMB141.1bn, RMB24.6bn and RMB21.8bn YTD, up 44%, 43% and 19%, respectively,

supporting long-term capital allocation in strategic or emerging industries.

Vanke receives up to RMB519mn shareholder loan from Shenzhen Metro