China Securities Co., Ltd. pointed out that this round of policy combination has "great strength and heavy determination", with policy measures to stabilize the economy exceeding expectations. According to calculations, the cumulative impact of interest rate cuts, reserve requirement ratio cuts, and lowering of stock mortgage loan rates on listed banks in 2025 is around a 10bps decrease in net interest margin. Under the pressure on interest margin, the fundamentals of the banking industry are expected to continue to stabilize in 2025. The implementation of this strong economic stability policy is expected to alleviate market pessimism, accelerate economic recovery. In addition, the unexpected introduction of measures such as increasing the core Tier 1 capital of large banks, postponing real estate policies, and optimizing policies for small and micro business loan extensions will help the banking industry alleviate pressure on capital adequacy ratios, improve risk resistance capabilities, and maintain the stability of the financial system. For the banking sector, while the bearish factors are materializing as expected, the introduction of favorable policies exceeding expectations, coupled with further entry of long-term funds into the market, bodes well for the valuation of the banking sector in the long run.