The recent semi-annual reports from public banks have underscored a significant enhancement in the financial services provided to the real economyThis growth is particularly evident in key sectors such as manufacturing and agriculture, known in China as "sannong," which refers to agriculture, rural areas, and farmersExecutives from multiple listed banks have expressed confidence in the first half of this year, noting that commercial banks have effectively supported the high-quality development of the real economy by efficiently managing aspects such as scale, structure, efficiency, and riskThe overall performance of these banks has remained stable and orderly.

One of the most notable trends is the balancing act between increased loan volume and decreased interest ratesThis year, banks are demonstrating a commitment to bolster credit supply, especially focused on major strategic initiatives and sectors that require support

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Across the board, the data shows a steady and reasonable growth in loans, indicating effective backing for the economy.

For instance, China Construction Bank has allocated a substantial sum of 3.05 trillion yuan to the manufacturing sector, marking a 12.79% increaseLoans to private enterprises have reached 5.87 trillion yuan, which is an 8.74% increase, while loans for strategic emerging industries saw a more significant boost, growing by 21.19% to 2.72 trillion yuanThe Industrial and Commercial Bank of China reported a 7.1% increase in RMB loans at its domestic branches, adding 1.74 trillion yuanBy the end of June, Agricultural Bank's total loan portfolio reached 24.4 trillion yuan, with new loans in the first half of the year totaling 1.77 trillion yuan, effectively addressing the demand for credit within the real economy.

Moreover, the trend towards reducing costs for the real economy is critical

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Recent reports from the People's Bank of China indicate that interest rates on loans are stabilizing at lower levelsFor example, the one-year and five-year Loan Prime Rates (LPR) were reported at 3.45% and 3.95%, unchanged and decreased by 0.25 percentage points, respectively, since last December.

Wang Zhiheng, the president of Agricultural Bank, noted that the bank's net interest margin was 1.45%, showing a slight recovery from the first quarterVarious factors, including adjustments in loan rates and policies aimed at benefiting the real economy, have led to a continued downward trend in loan interest ratesWang pointed out that despite the general downward trajectory, Agricultural Bank's performance contrasts positively with its peers, thanks to a focused strategy on addressing the needs of agriculture and rural areas.

Liao Yuanyuan, head of the Statistics and Risk Monitoring Division at the National Financial Supervisory Administration, emphasized the importance of maintaining a reasonable profit level for banks

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This is vital for timely capital replenishment, stable operations, and enhancing the ability to serve the real economyIn light of pressures from slowing profit growth, commercial banks have increasingly sought to enhance internal efficiency and cut costs.

This year, many banks have proactively reduced deposit rates to stabilize net interest marginsWang reiterated that the ongoing need to support the real economy and secure stable financing costs in society will maintain downward pressure on interest rates, especially in light of overall low rates in the bond marketAgricultural Bank aims to sustain reasonable growth in credit volume while optimizing its credit structure and quality.

Innovation in financial services has also acceleratedIn the first half of the year, banks have ramped up their technological finance initiatives, striving to align their services with the development of new productive forces in the economy

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For example, China Construction Bank has actively supported high-level technological self-reliance and innovation, facilitating the use of financial resources to empower real economic growthOne such success story involves Heju Polymer Materials Technology Co., a small and medium enterprise recognized at the provincial level for its specialized innovation, struggling to secure financing due to its nascent stage of development.

Upon learning of the company's financial needs, the Foshan branch of China Construction Bank quickly assembled a service team and employed a unique evaluation system to facilitate a comprehensive review for fundingLeveraging the bank's "Shanxin Loan" product, which is based on pure credit and offers full online processing, they successfully provided 8.1 million yuan in supportThis financing not only met the company's immediate needs but also allowed it to benefit from fiscal interest subsidies, thereby resolving its liquidity issues effectively.

Multiple banks are pioneering new financing models, ensuring that quality tech-driven enterprises receive crucial financial support

Agricultural Bank is dedicated to nurturing new productive forces by enhancing their technological finance service framework, boasting a loan balance of 715 billion yuan in high-tech manufacturing, with new loans reaching 58.1 billion yuanBank of China has steadily improved its technological financial service mechanisms, opening centers at both headquarters and branch levels to swiftly address customer and market needs.

At the local level, collaborative mechanisms between government, banks, and enterprises are proving impactful, effectively injecting financial resources into business developmentThe State-owned Assets Supervision and Administration Commission in Yichun, Jiangxi province, has been particularly active in using state capital to guide the efficient utilization of "financial vitality." For instance, the Yichun State Investment Group has partnered with the Jiangxi Provincial Modern Industry Guidance Fund to establish a fund with a total scale of 10 billion yuan, emphasizing investments in emerging industries and "specialized specialized new" enterprises.

Additionally, Yichun's venture capital company continually optimizes its market-driven investment mechanisms, constructing a comprehensive financial ecosystem that ties together industry projects, fund investments, and bank credit

This coordination has led to numerous strategic agreements with a combined intent to exceed 10 billion yuan in financing and investment collaboration.

Zhang Xiaodong, the vice president of Bank of China, highlighted the need for comprehensive financial service matrices that cater to the entire lifecycle of technological enterprises, establishing customized credit approval processes and evaluation models to suit their unique characteristics.

The risk resilience of publicly listed banks has also shown improvement, with key operational and regulatory indicators remaining within healthy rangesExecutives from several banks reiterated the importance of risk prevention, particularly in high-stake areas like real estateThey are activating measures to address non-performing assets effectively.

An encouraging trend is the reduction of non-performing loan rates among listed banks, a key factor that supports the sustainable development of the real economy

Industrial and Commercial Bank of China's non-performing loan rate stands at 1.35%, down from earlier this yearAgricultural Bank reported a rate of 1.32%, also reflecting a declineBy the end of June, Bank of China registered a rate of 1.24%, indicating positive strides in managing risk.

According to statistics, the banking sector's asset quality remains stable, with a decrease in the non-performing loan balance overallBy the end of the second quarter, the aggregated non-performing loans for commercial banks totaled 3.3 trillion yuan, experiencing a drop compared to previous quartersThe non-performing loan rate across commercial banks stands at approximately 1.56%, with continued improvements in provisioning levels.

Xiao Yuanqi, a deputy director at the Financial Regulatory Bureau, affirmed that the asset quality stability indicates overall manageable credit risks, and the intensity of non-performing asset disposal actions has escalated in the first half of the year, reaching 1.4 trillion yuan.

In summary, the operations of listed banks have achieved a commendable balance between speed, quality, efficacy, and risk, showcasing an overall positive trajectory