Chinese banks reporting first quarterly margin expansion in 4 years. Key driver: funding costs finally easing after prolonged compression.

This matters for anyone watching CNY flows and regional banking stability. Net interest margins have been under pressure since 2020 — combination of policy rate cuts, LPR reforms, and deposit competition.

Now seeing stabilization as deposit repricing catches up and loan mix improves. Not a dramatic turnaround, but the inflection is real. Watch for confirmation in next round of earnings from the big state banks.

Positive for broader China financials sentiment, especially if this holds through year-end. Margin relief = better earnings quality and potential for dividend sustainability.