Understanding the Market | Domestic Bank Stocks Continue to Rise, Third Quarter Bank Profit Growth Continues, Marginal Improvement in Interest Margin

Domestic bank stocks continue to rise, with China Merchants Bank up 2.88%, Bank of Chongqing up 2.85%, CITIC Bank up 2.6%, MINSHENG BANK up 2.46%, and HUISHANG BANK up 2.29%. Morgan Stanley's research report points out that although investment income has declined, net interest income and fee income of mainland banks have both increased. State-owned banks are expected to see profit growth in the third quarter of 2025 higher than in the first half of the year, with a rebound in net interest margin. Zhejiang Merchants Securities indicates that the performance of listed banks slightly exceeded expectations, with revenue growth remaining flat and profit growth slightly improving, and it is expected that the market will perform better in Q4

Hong Kong stocks of domestic banks rose, with Luzhou Bank up over 5%, Bank of Chongqing, CITIC BANK, and CEB BANK up nearly 3%, and MINSHENG BANK and CM BANK up over 2%

The banking sector fluctuated and rose, with Xiamen Bank up nearly 5%

The banking sector fluctuated and rose, with Xiamen Bank up nearly 5%, and CITIC Bank, Bank of Shanghai, Bank of Chongqing, Industrial Bank, and China Merchants Bank also rising

Bank stocks continue to rise, with Bank of Shanghai up over 2%, Bank of Chongqing, CITIC Bank, Agricultural Bank of China, China Merchants Bank, QLB, and PSBC all up over 1%

Chongqing Bank was fined 2.2 million for inadequate due diligence in the "three checks" of loans and imprudent investment business

Bank of Chongqing was fined 2.2 million yuan for inadequate "three checks" in loan management and imprudent investment practices. The bank has encountered issues in its loan management system, and relevant responsible personnel have also received warnings. Established in 1996, Bank of Chongqing is a local state-owned joint-stock commercial bank in the western region and is listed on the Hong Kong Stock Exchange and the Shanghai Stock Exchange. The chairman stated that 2025 is a critical year for the bank's development, with total assets expected to exceed 1 trillion yuan