JPMorgan released a report stating that the management of the domestic banks maintained a relatively optimistic tone during the second quarter performance briefing. The domestic banks have confidence in the sustained stability of net interest margins, and the contraction of expenses and income suggests that income growth in the second half of the year may stabilize. Although some banks, such as Bank of Communications, are facing tight capital conditions, the domestic banks reiterate their commitment to maintaining a stable dividend payout ratio.

The bank believes that due to policy headwinds, the market may view the domestic banks with skepticism, especially when it comes to net interest margins. Therefore, the stock price of domestic banks may continue to be weak in the short term. However, it is believed that the domestic banks have the determination to provide stable dividends per share, so there may be buying opportunities during the short-term weakness in stock prices. The next catalyst will be the third quarter performance announced at the end of October.