The whole line has been red for many days, making the voice of banking stocks ushering in the valuation repair market rising day by day. On February 10, the reporter of Beijing business daily noted that the banking sector continued to rise, with an overall increase of 0.73%. In terms of individual stocks, the share prices of 38 of the 42 A-share listed banks rose. In the view of analysts, despite fluctuations in the banking sector in recent years, the center of the banking sector has shown a slow upward trend, and should still be optimistic about the valuation repair market of the banking sector in the future.
On February 10, the banking sector was generally popular. Among the 42 A-share listed banks, 38 banks showed a growth trend, two banks opened and closed flat, and two banks closed down. Specifically, there are 10 banks with an increase of more than 1%, of which Bank Of Hangzhou Co.Ltd(600926) leads with an increase of 2.69%, and the increase of Bank Of Nanjing Co.Ltd(601009) , Industrial Bank Co.Ltd(601166) , Qilu Bank Co.Ltd(601665) , Bank Of Jiangsu Co.Ltd(600919) , Bank Of Chongqing Co.Ltd(601963) , Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) , Bank Of Communications Co.Ltd(601328) is also above 1%; The share prices of Bank Of Suzhou Co.Ltd(002966) , Agricultural Bank Of China Limited(601288) , Jiangsu Jiangyin Rural Commercial Bank Co.Ltd(002807) , Wuxi Rural Commercial Bank Co.Ltd(600908) , Bank Of China Limited(601988) , Bank Of Zhengzhou Co.Ltd(002936) , Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) also rose, with an increase of 0.92% – 0.99%.
Looking at the extended time line, although the A-share market has experienced wide shocks since 2022, the undervalued bank stocks have performed well. Since the beginning of 2022, individual bank stocks have gained gratifying momentum. Among the 42 A-share listed banks, 39 bank stocks have risen, of which Lanzhou Bank ranks first temporarily with a rise of 74.51%, Bank Of Chengdu Co.Ltd(601838) ranks second with a rise of 20.5%, Industrial Bank Co.Ltd(601166) shares have risen 18.96% since the beginning of the year, ranking third temporarily, Bank Of Jiangsu Co.Ltd(600919) , Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , Postal Savings Bank Of China Co.Ltd(601658) , Bank Of Hangzhou Co.Ltd(600926) , Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) Since the beginning of the year, the share price has also increased by more than double digits.
After the Spring Festival holiday, the performance of bank stocks is still relatively excellent. On February 7, the A-share banking sector rose by 2.65% in a single day, a new high in nearly half a year. By February 8, the rise of bank stocks continued. On the same day, Lanzhou bank rose the limit and closed at 6.02 yuan / share, Xiamen Bank Co.Ltd(601187) , Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) , Qilu Bank Co.Ltd(601665) and other banks also rose by more than 3%. From February 9 to the closing of the day, the overall share price of the banking sector showed a slight correction, down 0.16%. Turning to the reasons for the good trend of the banking sector since the beginning of the year, Tao Jin, deputy director of the macroeconomic research center of Suning Financial Research Institute, analyzed that the continuous rise of the banking sector, on the one hand, reflects the pre increase of the performance of the banking sector. Under the stock market style of “performance is king”, the price of bank shares has been realized; On the other hand, it also reflects investors’ expectation that bank profits will continue to rise steadily in the future.
On the one hand, the sector market broke out, and on the other hand, the “net breaking” pressure is still on. The reporter of Beijing business daily noted that as of the closing of February 10, 34 of the 42 listed banks of A-Shares had “broken net”, accounting for more than 80%. Among them, China Minsheng Banking Corp.Ltd(600016) P / B ratio is 0.36 times; Bank stocks with large net breaking range also include Hua Xia Bank Co.Limited(600015) , Chongqing Rural Commercial Bank Co.Ltd(601077) , Bank Of Communications Co.Ltd(601328) , etc. the price to book ratios of the above three banks are 0.39 times, 0.46 times and 0.48 times respectively.
On the first trading day of the year of the tiger, Bank Of Chongqing Co.Ltd(601963) and China Zheshang Bank Co.Ltd(601916) issued suggestive announcements to trigger the conditions for the start of measures to stabilize the stock price. Bank Of Chongqing Co.Ltd(601963) said in the announcement released on February 7 that from January 4 to February 7, the closing price of A-Shares of the bank has 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. China Zheshang Bank Co.Ltd(601916) also said on the same day that from January 4 to February 7, the closing price of A-Shares of the bank 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.
In addition to the suggestive announcements issued by the above two banks, Chongqing Rural Commercial Bank Co.Ltd(601077) also issued an announcement on the stock price stabilization plan on February 7, which said that from January 4 to February 7, the closing price of the bank’s A-share stock was lower than the bank’s latest audited net assets per share for 20 consecutive trading days, and the conditions for the initiation of measures to stabilize the stock price have been triggered. 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 non independent directors and senior managers who need to perform the obligation of stabilizing the stock price, including 5 non independent directors and 4 senior managers. The above-mentioned senior managers increase their holdings of Chongqing Rural Commercial Bank Co.Ltd(601077) shares with their own funds that do not exceed 15% of the salary (after tax) received from the bank in the previous year.
“In recent years, although there have been fluctuations in the banking sector, the center of the banking sector has shown a slow upward trend.” According to the analysis of Zhou Maohua, a macro researcher of the financial market department, as a cyclical sector, bank stocks reflect the optimistic expectations of the market on the economic outlook, and the steady economic recovery is expected to drive the overall improvement of enterprise operation and the improvement of bank profits and asset quality. In the future, we are still optimistic about the valuation and repair of the banking sector, mainly because China’s economy is expected to maintain expansion, the banking sector remains profitable and the asset quality is stable; At the same time, the reform of the financial industry has been deepened and the quality of bank operation has been steadily improved; As well as the high dividend yield of banks, it still has a strong attraction to partial conservatism and value investors.
