On May 29th, Chongqing Bank (601963) A-share closed at 12.02 yuan, with a daily increase of 5.90%, leading the banking sector higher. Since the beginning of this year, the A-share stock price of the bank has risen by 12.75%, with a market value increase of over 20%. Both the stock price and market value have reached new highs in nearly five years. Of particular note is that the bank not only has outstanding performance in daily market trends, but also has the highest increase in stock prices among A-share listed banks in the four time dimensions of 5th, 10th, 20th, and 60th since the beginning of the year.

The trend of Chongqing Bank's A-share stock price

In the eyes of analysts, this is not only a landmark achievement of Chongqing Bank's successful start to the 15th Five Year Plan, but also a very distinctive recognition of Chongqing in the capital market. So what is the logic behind Chongqing Bank's strong market performance?

The first layer of logic: Fundamentals provide strong support.

Comparison of Core Indicators of Chongqing Bank in the First Quarter of 2026

Performance is an important support for the sustainable rise of stock prices. According to the 2025 annual report, Chongqing Bank achieved a total operating revenue of 15.113 billion yuan, a year-on-year increase of 10.48%; The net profit attributable to the parent company was 5.654 billion yuan, a year-on-year increase of 10.49%. Among the 17 A-share listed city commercial banks, only Chongqing Bank achieved both revenue and net profit growth rates exceeding 10%.

Entering 2026, the inertia of growth will not decrease. The first quarter report shows that the bank's revenue and net profit increased by 11.57% and 11.22% year-on-year, respectively. In other words, the pace of high-quality development of the bank is still continuing.

Even more valuable is that achieving growth is not achieved through financial manipulation. Profits with revenue are healthy and sustainable, and Chongqing Bank's profits have not played the game of lowering provisions and rushing to clear them. Not only has it achieved double positive growth in revenue and net profit for nine consecutive quarters, but it is also the only A-share listed bank that has been able to maintain a "double 10%" growth for the past three quarters.

Changes in non-performing loan ratio of Chongqing Bank

The second layer of logic: Asset quality provides strong support.

Under the growth curve of continuous expansion of business scale, Chongqing Bank strictly adheres to the bottom line of asset quality and has not compromised half a step for expansion. In the past three years, only six A-share listed banks have achieved consecutive increases in net profit and provision coverage, with Chongqing Bank among them.

At the same time, the non-performing loan ratio and focus loan ratio of the bank have been "double declining" for two consecutive years, with the focus loan ratio dropping by 1.4 percentage points in the past two years, ranking second among A-share listed banks in terms of decline. This indicates that the quality of its growth can withstand scrutiny.

The third layer of logic: The increase in holdings by all parties provides strong support.

The state-owned shareholders of Chongqing Bank have increased their holdings in succession, and the number of institutional holdings has almost doubled.

In recent years, there has been a clear and coherent increase in state-owned shareholders' holdings around Chongqing Bank. In 2026, Chongqing Expressway Group increased its holdings of 151 million A-shares through convertible bond to equity swaps, with a total shareholding ratio of 4.99% along with concerted action parties; By 2025, Chongqing Real Estate Group will increase its holdings by 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 to 8.50%.

This continuous increase in holdings led by core local state-owned assets clearly conveys the firm recognition of regional important capital for its business prospects and long-term value to the market, and to a certain extent plays a role in stabilizing expectations and consolidating valuation anchors.

Number of shareholding institutions of Chongqing Bank

The attitude of institutional investors is equally clear. The number of shareholding institutions of Chongqing Bank has jumped from 224 in 2024 to 445 in 2025, nearly doubling; The Shanghai Stock Connect, which is regarded as a "smart money" by the market, has seen its shareholding increase from 44.646 million shares at the beginning of 2025 to 51.359 million shares at the end of the year, with a steady increase in its holding ratio.

The fourth layer of logic: Capital space provides strong support.

Chongqing Bank's convertible bond to equity conversion is accelerating, and capital space is opening up.

Scale expansion naturally consumes capital. At the end of 2025, the core tier one capital adequacy ratio of Chongqing Bank will be 8.53%, with a capital adequacy ratio of 12.55%, which has decreased compared to the end of the previous year. However, signals of marginal repair have emerged at the end of the quarter - with two indicators rebounding to 8.67% and 12.57%, respectively.

Greater flexibility lies in the card of convertible bond to equity conversion. Chongqing Bank issued 13 billion yuan worth of convertible bonds in 2022. As of March 31, 2026, a total of 1.437 billion yuan of convertible bonds have been converted into shares, forming 151.2445 million A-shares of common stock, of which approximately 151 million shares were converted in 2026. The outstanding convertible bonds that have not yet been converted account for 88.95% of the total issuance. This will leave ample room for Chongqing Bank to continue expanding its balance sheet during the 15th Five Year Plan period.

The fifth layer of logic: Innovation collaboration provides strong support.

Chongqing Bank has clarified its development path under the four fold synergy.

At the performance briefing, the relevant person in charge of the bank proposed to coordinate four synergies in the next stage: synergy between total volume and price, synergy between capital and assets, synergy between development and security, and synergy between foundation and innovation. These four moves outline the leadership team's clear plan for the future development path.

These five layers of logic are driving its market valuation back onto a predictable track.

From the results, Chongqing Bank has caught the growth momentum since 2025. But the question that the bank will answer next is also clearer:

Can comprehensive services keep up with the scale and revenue?

Can interest rate management and risk be stabilized under the favorable development of regional economy?

Can the efficiency of capital utilization match the demand for a new round of balance sheet expansion, under the premise of state-owned asset shareholders' relay increase in holdings and convertible bond to equity conversion opening up capital space?

After trillions, Chongqing Bank has entered a new stage. What the market wants to see next is whether this bank can solidify its phased speed and regional dividends into sustainable, cross cycle, and stable operational quality and efficiency.

As for the stock price and market value hitting new highs in the past five years, it may be the market's early answer to this.