Grain Ronghui October 23rd | JPMorgan issued a report, listed Postal Savings Bank of China as a positive catalyst to watch, reiterated a "shareholding" rating, H-share target price of 5.8 Hong Kong dollars. The report stated that Postal Savings Bank of China is expected to announce third quarter performance on October 30, which is expected to be a short-term stock price driver. The report mentioned that Postal Savings Bank of China reached an agreement with China Post to reduce its agency deposit rate, effective since July this year. The report believes this will reduce the operating expenses of Postal Savings Bank of China and promote the recovery of pre-provision operating profit in the third quarter. JPMorgan stated that due to the lowest proportion of time deposits in Postal Savings Bank of China among domestic banks, it is expected to benefit the most from interest rate cuts. The report also mentioned that the valuation premium of Postal Savings Bank of China relative to the four major state-owned banks has narrowed from 50% at the beginning of 2023 to 13% in October this year, mainly due to its narrowing profit gap with the four major banks. JPMorgan expects that with the reduction in agency deposit rates and symmetric interest rate cuts in the mainland, the valuation premium of Postal Savings Bank of China relative to the four major state-owned banks is expected to expand again.