HK Stock Market Move | Most of the bank stocks rose Bank Of Chongqing (01963) up more than 3% BQD (03866) up more than 2%

The majority of domestic banking stocks rose, as of the time of writing, Bank Of Chongqing (01963) rose by 3.5% to HK$7.69, BQD (03866) rose by 2.9% to HK$3.9, Agricultural Bank Of China (01288) rose by 1.89% to HK$4.84, and China Merchants Bank (03968) rose by 1.77% to HK$46. On the news front, the People's Bank of China announced on May 7 a package of financial policy measures, including a reduction in the reserve requirement ratio by 0.5 percentage points, a downward adjustment of the policy interest rate by 0.1 percentage points, among other measures. China Securities Co., Ltd. stated that it is expected that this round of financial policy efforts will further drive economic recovery, thereby promoting substantial improvement in the fundamentals of banks. China Post Securities believes that the significance of this policy signal is clear, reflecting the April meeting of the central committee of the Communist Party of China's Political Bureau's relevant requirements to stabilize employment, enterprises, the market, and expectations, which are expected to improve business and resident expectations, potentially leading to an improvement in bank asset quality. It is worth noting that on May 8, China Merchants Bank and CITIC BANK announced their plans to establish financial asset investment companies (AIC) at full investment, with investment amounts of 15 billion yuan and 10 billion yuan respectively. Prior to this, on May 7, Industrial Bank announced that it had been approved to establish Xingyin Financial Asset Investment Co., Ltd. CICC pointed out earlier that in addition to the direct project returns brought by debt-to-equity swaps and equity investments, the comprehensive benefits brought by AIC to banks are more worthy of attention. On one hand, as one of the "Five Articles," technology finance is a key direction for banks to develop, and AIC provides commercial banks with an effective means to better meet the financing and other financial needs of technology enterprises, providing a new path for banks to serve the real economy; on the other hand, AIC can leverage other comprehensive benefits besides financing needs.