BoCom International released a report that it is rumored that the interbank certificate of deposit will be included in the interbank debt statistics. At present, the restrictions on the scale of interbank liabilities are mainly reflected in document No. 127and MPA assessment. From the proportion of interbank liabilities to total liabilities, the proportion of small and medium-sized banks is relatively higher as a whole. Since 2014, interbank certificate of deposit has been one of the important drivers of debt growth of small and medium-sized banks.

If interbank certificates of deposit are included in interbank liabilities, by the end of June 16, small and medium-sized banks accounted for an average of nearly 30%, of which Pudong Development, Societe Generale and Bank of Shanghai accounted for more than 33%, and Everbright nearly 33%. If some small and medium-sized banks want to get full marks in the assessment of MPA interbank liabilities, the expansion of interbank certificates of deposit and interbank liabilities will face some constraints. The inclusion of interbank certificates of deposit in interbank liabilities once again shows that the direction of deleveraging at the regulatory level is still continuing, and the competition of core debt will intensify.

BoCom International believes that the current 17-year PE and PB of the industry are 5.51 and 0.71 times, maintaining the leading banking rating, maintaining China CITIC Bank Corporation's (00998-HK) buy rating, and maintaining the long-term buy rating of Bank of China (00939-HK) and Bank of China (03988-HK). As China's 02799-HK has risen more than 15 per cent since it was upgraded at the end of December, the room for valuation improvement has narrowed and the rating has been downgraded to long-term buying, maintaining its target price of HK $3.36.