On May 29, the A-shares of Bank Of Chongqing Co.,Ltd. (601963) closed at 12.02 yuan, with a single-day increase of 5.90%, leading the banking sector. Since the beginning of this year, the bank's A-share price has risen by 12.75% cumulatively, and its market capitalization has increased by over 20%, with both the stock price and market cap reaching their highest levels in nearly five years. Particularly noteworthy is that the bank's performance is not only outstanding on a single day; from the start of the year to date, its stock price gains across the 5-day, 10-day, 20-day, and 60-day time frames have all ranked first among A-share listed banks.

In the view of analysts, this marks a significant achievement for Bank Of Chongqing Co.,Ltd. at the outset of the "15th Five-Year Plan" period and also reflects a distinct Chongqing identity in the capital markets. So, what is the underlying logic behind the bank's robust market performance?

The first layer of logic: solid fundamentals provide strong support. Performance is a crucial pillar for sustainable stock price growth. The 2025 annual report shows that Bank Of Chongqing Co.,Ltd. achieved annual operating revenue of 15.113 billion yuan, a year-on-year increase of 10.48%, and net profit attributable to shareholders of 5.654 billion yuan, up 10.49% year-on-year. Among the 17 A-share listed city commercial banks, only Bank Of Chongqing Co.,Ltd. achieved both revenue and net profit growth rates exceeding 10%.

Entering 2026, the growth momentum has continued unabated. The first-quarter report indicates that the bank's revenue and net profit grew by 11.57% and 11.22% year-on-year, respectively. In other words, the bank's pace of high-quality development remains steady.

More commendably, this growth is not achieved through financial engineering. Profits backed by revenue are healthy and sustainable; Bank Of Chongqing Co.,Ltd. has not engaged in practices such as artificially lowering provisions or conducting aggressive write-offs. The bank has achieved positive growth in both revenue and net profit for nine consecutive quarters and is the only A-share listed bank to sustain "double 10%" growth over the past three quarters.

The second layer of logic: asset quality provides strong support. Amid the expanding growth curve of its business scale, Bank Of Chongqing Co.,Ltd. has strictly adhered to asset quality standards without compromising for the sake of expansion. Over the past three years, only six A-share listed banks have achieved simultaneous increases in both net profit and provision coverage ratio, and Bank Of Chongqing Co.,Ltd. is among them.

Simultaneously, the bank's non-performing loan ratio and special-mention loan ratio have declined for two consecutive years—with the special-mention loan ratio decreasing by 1.4 percentage points cumulatively over the past two years, ranking second in terms of reduction among A-share listed banks. This indicates that the quality of its growth is robust and withstands scrutiny.

The third layer of logic: shareholding increases provide strong support. State-owned shareholders of Bank Of Chongqing Co.,Ltd. have successively increased their holdings, and the number of institutional holdings has nearly doubled.

In recent years, the actions of state-owned shareholders increasing their stakes in Bank Of Chongqing Co.,Ltd. have been clear and consistent: In 2026, Chongqing Expressway Group increased its holdings of A-shares by 151 million shares through the conversion of convertible bonds, bringing its total shareholding ratio, together with its concerted parties, to 4.99%; in 2025, Chongqing Real Estate Group completed an increase of 52 million shares, raising its shareholding ratio to 6.53%; in 2023, Chongqing Water Investment Group increased its holdings three times, pushing its shareholding ratio up to 8.50%.

This coherent pattern of shareholding increases, led by core local state-owned capital, clearly signals to the market the firm recognition of the bank's operational prospects and long-term value by key regional capital. To some extent, this has helped stabilize market expectations and solidify valuation anchors.

The stance of institutional investors is equally pronounced. The number of institutions holding shares in Bank Of Chongqing Co.,Ltd. surged from 224 in 2024 to 445 in 2025, nearly doubling. The holdings of Shanghai-Hong Kong Stock Connect, often regarded as "smart money," increased from 44.646 million shares at the beginning of 2025 to 51.359 million shares by year-end, with the holding ratio steadily rising.

The fourth layer of logic: capital space provides strong support. The accelerated conversion of convertible bonds at Bank Of Chongqing Co.,Ltd. is opening up capital space.

Expansion naturally consumes capital. At the end of 2025, Bank Of Chongqing Co.,Ltd.'s core tier 1 capital adequacy ratio stood at 8.53%, and its capital adequacy ratio was 12.55%, both showing a decline compared to the end of the previous year. However, signs of marginal recovery emerged by the end of the first quarter, with the two ratios rebounding to 8.67% and 12.57%, respectively.

Greater flexibility lies in the conversion of convertible bonds. Bank Of Chongqing Co.,Ltd. issued 13 billion yuan in convertible bonds in 2022. As of March 31, 2026, a cumulative 1.437 billion yuan of these bonds had been converted into shares, resulting in 151.2445 million A-shares, with approximately 151 million shares converted in 2026 alone. The remaining unconverted bonds account for 88.95% of the total issuance. This will provide ample room for Bank Of Chongqing Co.,Ltd. to continue expanding its balance sheet during the "15th Five-Year Plan" period.

The fifth layer of logic: innovation and synergy provide strong support. Bank Of Chongqing Co.,Ltd. has outlined a development path centered on four key synergies.

During the performance briefing, relevant bank officials proposed that the next phase should focus on coordinating four synergies: synergy between scale and pricing, synergy between capital and assets, synergy between development and security, and synergy between fundamentals and innovation. These four strategic moves outline the leadership's clear planning for the bank's future development path.

These five layers of logic are driving the bank's market valuation back onto an expected trajectory.

From the results, Bank Of Chongqing Co.,Ltd. has sustained the growth momentum since 2025. However, the questions the bank needs to address next have become clearer:

Can comprehensive services keep pace with the growth in scale and revenue? Can net interest margin management and risks remain stable amid favorable regional economic development? With state-owned shareholders successively increasing their holdings and convertible bond conversions opening up capital space, can capital utilization efficiency meet the demands of a new round of balance sheet expansion?

After reaching the trillion-yuan milestone, Bank Of Chongqing Co.,Ltd. has entered a new phase. What the market wants to see next is whether the bank can translate its阶段性 speed and regional advantages into sustainable, cross-cycle, and稳健 operational quality and efficiency.

As for the stock price and market cap reaching their highest levels in nearly five years, this may be the market's提前 answer.

Special note: This article does not constitute any form of investment advice. Investment involves risks, and caution is advised when entering the market. Any actions taken based on this information are at the investor's own risk.