Continuing the rising market of the previous trading day, the banking sector continued to rise on February 8. As of the closing of the day, Bank of Lanzhou rose the limit, Xiamen Bank Co.Ltd(601187) rose by more than 5%, and Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) , Qilu Bank Co.Ltd(601665) , China Construction Bank Corporation(601939) rose by more than 3%. At the same time, some bank stocks reached the conditions to trigger the start of measures to stabilize the stock price, and the internal differentiation of the sector.
Lanzhou bank becomes a dark horse
At 10:47 a.m. on February 8, Bank of Lanzhou rose the limit by 10.05%. The latest share price was 6.02 yuan, the transaction volume was 1.484 billion yuan, and the total market value was 34.288 billion yuan.
Netizens joked: “I thought it was a mosquito leg, but it was actually a dark horse in bank stocks.”
On January 17, Bank of Lanzhou landed on Shenzhen Stock Exchange, becoming the first bank stock in the year of the tiger and the 42nd listed bank stock in the A-share market.
According to the previous announcement of Bank of Lanzhou, Bank of Lanzhou issued no more than 570 million shares for the first time, with an issue price of 3.57 yuan / share. The total amount of funds raised is expected to be 2.033 billion yuan, which will be used to enrich the bank’s capital after deducting the issuance expenses, so as to improve the capital adequacy level, enhance the comprehensive competitiveness and enhance the shareholder value.
In fact, the market was not optimistic about the listing of Lanzhou bank. Insiders have said that in the atmosphere of “net breaking” crisis in listed bank stocks, the listing rate of Lanzhou bank may not escape “bad luck”. The Bank of Lanzhou had also issued a number of announcements to postpone the online and offline purchase time and reduce the issue price, which made the market less optimistic about its “money view”.
However, the debut of Bank of Lanzhou was a surprise. The opening price of the day was 4.28 yuan. As the intraday transaction price increased by 10% or more than the opening price for the first time, the trading of the stock was temporarily suspended from 9:30 and resumed at 10:00, and Bank of Lanzhou finally ended with a 43.98% limit.
Since then, Lanzhou bank has ushered in three price limits. As of the closing on January 28, its share price was 5.3 yuan / share, which has fallen nearly 30% from the high level, but it still has an increase of more than 50% from the issue price. After the opening of the market in the year of the tiger, Lanzhou bank ushered in another wave of growth.
By the first half of 2021, the total assets of Lanzhou bank were 396.269 billion yuan, and the equity (net assets) attributable to shareholders was 27.712 billion yuan; In the first half of 2021, the operating revenue was 39.207 billion yuan and the net profit attributable to the parent company was 7.506 billion yuan. As of June 30, 2021, the balance of non-performing loans was 3.654 billion yuan, and the non-performing loan ratio was 1.71%, which was not only higher than the overall level of listed banks, but also higher than Bank Of Xi’An Co.Ltd(600928) in the same northwest.
Zhongtai Securities Co.Ltd(600918) pointed out that the profitability of Bank of Lanzhou has declined slowly in recent years, mainly due to the downward drag of interest margin, and non interest and asset pricing have advantages over peers. Compared with the peers, the bank is weak in net interest income, has greater provision, has significant advantages in net other non interest income over the peers, and the cost end expense is basically the same as the average level of the peers.
several banks will stabilize the stock price
On February 8, the banking sector protected the market against the market again. Except bank of Lanzhou, Xiamen Bank Co.Ltd(601187) increased by 5.44%, while Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) , Qilu Bank Co.Ltd(601665) , China Construction Bank Corporation(601939) increased by 4.18%, 3.8% and 3.26% respectively, and Ping An Bank Co.Ltd(000001) , China Zheshang Bank Co.Ltd(601916) , Industrial And Commercial Bank Of China Limited(601398) increased by more than 2%.
On the other hand, a number of banks have issued share price stabilization measures. On February 7, Bank Of Chongqing Co.Ltd(601963) and China Zheshang Bank Co.Ltd(601916) both announced that they met the conditions for triggering the start of measures to stabilize the stock price.
Bank Of Chongqing Co.Ltd(601963) said that from January 4, 2022 to February 7, 2022, the closing price of A-Shares of the bank had been lower than the net assets per share for 20 consecutive trading days, reaching the starting conditions for triggering measures to stabilize the stock price. According to the plan for stabilizing the stock price, Bank Of Chongqing Co.Ltd(601963) the board of directors will formulate a specific plan for stabilizing the stock price within 10 trading days (February 21, 2022) from the date when the stock price triggers the conditions for initiating the measures for stabilizing the stock price, implement it after fulfilling the relevant internal decision-making procedures and external approval / filing procedures, and announce it in accordance with the information disclosure requirements of the listed company.
China Zheshang Bank Co.Ltd(601916) also said that from January 4, 2022 to February 7, 2022, the closing price of the bank’s A-share stock has been lower than 5.269 yuan for 20 consecutive trading days, meeting the conditions for triggering the start of measures to stabilize the stock price. According to the plan for stabilizing share price, the bank shall formulate measures for stabilizing share price within 10 trading days after the trigger date (February 7, 2022) and announce them by the board of directors.
On February 8, Chongqing Rural Commercial Bank Co.Ltd(601077) also issued an announcement on the plan to stabilize the stock price. Chongqing Rural Commercial Bank Co.Ltd(601077) will fulfill the obligation of stabilizing the stock price by increasing the shares held by directors and senior managers. Specifically, there are 9 directors and senior managers who need to perform the obligation of stabilizing the stock price, including 5 directors and 4 senior managers. The above-mentioned persons increased their holdings of Chongqing Rural Commercial Bank Co.Ltd(601077) shares with their own funds that did not exceed 15% of the salary (after tax) received from the bank in the previous year.
From the perspective of individual stocks, banks are differentiated. For example, from the perspective of the choice of fund heavy position holdings, the Research Report of Shengang securities shows that there is a large differentiation of individual stocks in the banking sector, and the fund prefers differentiated varieties with distinctive characteristics and strong growth. At the same time, the agricultural and commercial bank with prominent regional location has increased the holdings of the fund against the trend: the fund heavy position holdings are relatively concentrated, accounting for more than 10% of China Merchants Bank Co.Ltd(600036) (36.49%), Bank Of Ningbo Co.Ltd(002142) (26.49%) Ping An Bank Co.Ltd(000001) (10.02%) and Industrial Bank Co.Ltd(601166) (6.49%), accounting for 79.48% in total, are high-quality banking stocks with distinctive characteristics and strong growth. Agricultural commercial banks with superior regional location were increased by the fund against the trend.
From the perspective of the preference of northbound funds, Yu Jinxin, an analyst at Minsheng securities, said that in the second two weeks after January, the position proportion of northbound funds in joint-stock banks rebounded, urban commercial banks continued to rise, but the margin slowed down, and the position proportion of large banks decreased, which changed the previous trend of decline in joint-stock banks, urban commercial banks and large commercial banks. At present, the interest rate reduction is superimposed on the promotion of real estate M & a policy, the real estate credit risk is mitigated, and the reason for the valuation repair of joint-stock banks is stronger than that of urban commercial banks.
On the whole, the market believes that although the market of bank stocks is late, it is optimistic about the valuation repair of bank stocks. On the one hand, the main logic of banks is to broaden money and credit, promote steady growth and improve economic expectations. On the other hand, during the Spring Festival, a number of real estate M & A to special bonds were issued, and the M & A events also increased significantly, which mitigated the real estate risk; Real estate sales in January shrank significantly year-on-year, and the subsequent five-year LPR (quoted interest rate in the loan market) still has downward space, which further catalyzes the continuation of the bank market.
