National AMC Jingu Bank stock: equity method increases profits.

The 2025 semi-annual report disclosed by listed banks shows that in the first half of the year, asset management companies have significantly increased their allocation of bank stocks, becoming an important force in the allocation of bank sectors. The ways in which AMC positions in bank stocks not only include increasing holdings in the secondary market, but also holding convertible bonds issued by banks, and then converting them into stocks. It is understood that the increased investment in bank stocks by AMCs has led to a two-way rush: on the one hand, national AMCs are generally facing operational pressures, and investing in bank stocks in a "below book value" state is beneficial to improve their own operating performance; on the other hand, long-term funds represented by AMCs continuously entering the market are expected to promote the valuation repair of the bank sector and help banks supplement capital. Chen Shaoxing, an analyst at Guosen Securities, said, "Currently, several banks that have been taken over by AMCs are generally valued at less than 1 times price-to-book ratio, with stable future profit trends. This characteristic can effectively improve the financial statements of AMCs. In addition, when AMC obtains a board seat in a bank, the investment in the bank can be accounted for using the equity method under long-term equity investment. Under this method of accounting, if the purchase cost is lower than the book value, the difference can be included in the current profit and loss; during the future investment holding period, AMC can recognize profit and loss based on shareholding ratio and the bank's current profits, and the investment return rate is equivalent to the bank's ROE."