Just after the Spring Festival of the year of the tiger, bank stocks ushered in a wave of domineering overweight. Industrial Bank Co.Ltd(601166) key employees voluntarily spend more than 300 million real gold and silver to increase their shares; The executives of China Zheshang Bank Co.Ltd(601916) also paid out of their own pocket to stabilize the stock price.
Although the holdings of the above two banks are different, under the current situation that the share prices of bank shares are generally low, increasing the holdings of their own shares can undoubtedly convey confidence to the market. Insiders said that the current bank valuation is low, and it is still a sector with great allocation value for large funds.
Industrial Bank Co.Ltd(601166) “family members” invested more than 300 million to buy their own shares
On February 21, Industrial Bank Co.Ltd(601166) announced that from January 13 to February 18, 2022, Industrial Bank Co.Ltd(601166) some subsidiaries, branches and department heads of the head office (including their spouses and children) voluntarily bought 16.9329 million shares of the bank’s shares from the secondary market with their own funds, with a transaction price range of 20.36 yuan to 23.08 yuan per share.
According to this calculation, Industrial Bank Co.Ltd(601166) the increased holding amount is about 345 million to 391 million yuan. This amount is far more than the increase in holdings of other bank executives out of their own pocket in recent years. The purchase of Industrial Bank Co.Ltd(601166) shares does not involve the change of shareholding of directors, supervisors and senior managers of the company.
Why do you spend more than 300 million to buy your own stocks? Industrial Bank Co.Ltd(601166) has not made an official statement on this. However, some insiders believe that at this time, when the bank stock is at a low point, the market is generally optimistic about the bank stock, and such a huge purchase of its own stock can convey confidence in the future development of the bank to the market and further stabilize and enhance the bank’s share price; At the same time, it may also lay a foundation for its convertible bond to equity swap.
When answering investors’ questions on the interactive platform on February 7, the board secretary said that the bank’s convertible bonds had been listed and traded on January 14. According to the announcement issued by Industrial Bank Co.Ltd(601166) on December 7, 2021, the bank plans to issue convertible bonds with a total amount of no more than 50 billion yuan and an issuance period of 6 years from the date of issuance. According to Zheshang Securities Co.Ltd(601878) calculation, the trigger price of the bank’s compulsory redemption of convertible bonds is 32.11 yuan. 60.68 billion of core bonds can be converted to 60.6 billion {0.8 billion of core bonds.
during the year, many bank executives paid their own money to protect the market
On the first trading day of the year of the tiger (February 7), the China Zheshang Bank Co.Ltd(601916) starting conditions for the measures to stabilize the stock price was set out, and its relevant senior management shareholding increase plan was released on the 21st. According to the announcement released by China Zheshang Bank Co.Ltd(601916) , as of February 21, 2022, the bank has 7 directors (excluding independent directors and directors who do not receive remuneration in the company) and senior managers who need to perform the obligation of stabilizing the stock price, and will increase their A-share shares of the company with their own funds that receive no less than 15% of the remuneration (after tax) from the company in the previous year.
At the same time, based on the confidence in the future development prospects of China Zheshang Bank Co.Ltd(601916) and the recognition of growth value, in addition to completing the above compulsory shareholding increase, six of the senior managers will voluntarily increase the A-share shares of the company with their own funds at the same time.
According to statistics, the lower limit of the compulsory increase amount of these seven people is 1.9235 million yuan, and the voluntary increase amount is 3.4193 million yuan, which means that China Zheshang Bank Co.Ltd(601916) the increase amount of senior executives will not be less than 5.3428 million yuan.
In fact, in addition to the above two banks, Chongqing Rural Commercial Bank Co.Ltd(601077) , Bank Of Chongqing Co.Ltd(601963) have also triggered the obligation of “maintaining stability” of stock prices since this year. Among them, Chongqing Rural Commercial Bank Co.Ltd(601077) 9 directors and senior executives will increase their holdings with their own funds that do not exceed 15% of their after tax remuneration from the bank in the previous year; Chongqing Yufu capital operation group, the largest shareholder of Bank Of Chongqing Co.Ltd(601963) , plans to increase its holdings of the bank by no less than 25.859 million yuan within six months; At the same time, the bank’s 12 directors and senior executives also paid out of their own pocket, proposed to increase their holdings by no less than 763400 yuan in total, and voluntarily locked them for six months.
bank shares have strong allocation value
Last week, the A-share bank index first fell and then rose, falling 1.1% for the whole week. Despite the recent weakness of the banking sector, the market is optimistic about it for a long time.
Everbright Securities Company Limited(601788) Wang Yifeng, chief analyst of the financial industry, believes that the current trading momentum data of the banking sector is still in the rising channel, and the indicators to measure the movement of funds are also at a relatively reasonable level, and the subsequent rising market is expected to continue. Looking forward to the next stage, the policy and fundamental factors driving the performance of bank stocks still exist.
In Wang Yifeng’s view, the real estate stability maintenance policy turns to the demand side, and there is expected to be room for continuous relaxation in the follow-up, forming an important support for “stable growth”. At the same time, the industrial policy of stabilizing investment may be launched continuously to enhance the market’s expectation of the sustainability of “wide credit”, which will also boost the cyclical performance of the banking industry.
Citic Securities Company Limited(600030) the previously released report also believes that the recent boom of the banking sector has increased significantly, reflecting the impact of “stable growth” and the regional resonance of the market seeking undervalued value. Banks have entered a stable performance period from the period of rapid rise. It is expected that after March, after the economic expectation is stable, they will gradually enter the market range driven by fundamentals. It is suggested to pay attention to the dimensional allocation value of the whole year.
From the bank side, Huatai Securities Co.Ltd(601688) expects that the asset quality of listed banks will be stable in the next few years, which will build the safety margin of bank shares. At present, the boom of high-quality banks is certain and long-term. These banks occupy the sunrise track of the financial industry. At the same time, we are optimistic about the choice of banks with undervalued value, asset quality and safety and expected to succeed in transformation.
