Bank of Zhengzhou Co Ltd Class A

Bank of Zhengzhou recently disclosed its mid-2026 results, achieving double growth in operating revenue and net profit attributable to shareholders, with continued improvement in asset quality. As of the end of June, the bank's total assets stood at 790.7 billion yuan, up 6.32% from the end of the previous year; operating revenue was 6.759 billion yuan, up 1.04% year on year; net profit attributable to shareholders was 1.677 billion yuan, up 3.03% year on year. Total liabilities were 731.942 billion yuan, up 6.57%, of which total deposit principal absorbed was 514.126 billion yuan, up 11.02%, with personal deposits rising to 59.70% of the total. Net interest income was 5.527 billion yuan, up 3.29% year on year, accounting for 81.76% of operating revenue; the average cost rate of deposits absorbed fell to 1.79%, down 26 basis points year on year. The non-performing loan ratio was 1.68%, down 0.03 percentage points from the end of the previous year; the provision coverage ratio was 193.61%, up 7.80 percentage points. The capital adequacy ratio was 11.32%, meeting regulatory requirements. In addition, the bank's technology loan balance was 33.308 billion yuan, inclusive small and micro enterprise loan balance was 55.077 billion yuan, and agriculture-related loan balance was 55.919 billion yuan, up 8.13% from the end of the previous year.

Bank of Zhengzhou released its 2026 interim report, with first-half net profit attributable to the parent of 1.68 billion yuan, up 3% year on year. Operating revenue was 6.76 billion yuan, up 1.0% year on year; net interest income was 5.53 billion yuan, up 3.3% year on year; non-interest net income was 1.23 billion yuan, down 8.0% year on year. As of the end of the second quarter, total assets were 790.7 billion yuan, up 6.32% from the end of the previous year; the non-performing loan ratio was 1.68%, down 0.03 percentage points from the end of the previous year; the provision coverage ratio was 193.61%, up 7.8 percentage points from the end of the previous year. The company said operations are stable and it continues to strengthen credit allocation and risk management.

The A-share banking sector has recently shown pronounced defensive attributes and may see recovery opportunities over the long term. As of 11:00 a.m. on July 20, A-share bank stocks all rose, with Xiamen Bank up 5.15 percent, Shanghai Rural Commercial Bank up 3.75 percent, and Bank of Zhengzhou up 2.86 percent. The CSI Bank Index gained 1.71 percent, while the Hang Seng China Mainland Financial Index rose 2.31 percent. Industry insiders noted that tech stocks slumped broadly last Friday, prompting funds to exit high-volatility, high-valuation tech growth sectors and flow into defensive sectors characterized by stable dividends and low valuations, with the CSI Bank Index being a direct beneficiary. Huatai Securities analysis suggests the market may see a style rebalancing opportunity, and banks, as a sector with improving fundamentals, could see recovery opportunities in subsequent fund rotation. The ChinaAMC Bank ETF is among the lowest total expense ratio ETFs tracking the CSI Bank Index, with feeder funds including A-class 008298, C-class 008299, and D-class 024642. The Hang Seng China Mainland Financial Index selects mainland-controlled financial-themed stocks from the Stock Connect universe, with banks and insurance accounting for nearly 90 percent and the Big Four banks making up around 45 percent. The ChinaAMC Hang Seng China Mainland Financial ETF is the largest ETF tracking this index.