Focus:
On February 26, the registration and trusteeship center of banking wealth management issued the annual report of Bank Of China Limited(601988) banking wealth management market (2021): by the end of 2021, the scale of banking wealth management market had reached 29 trillion yuan, a year-on-year increase of 12.14%; A total of 47600 new financial products were issued throughout the year, raising 122.19 trillion yuan.
On February 25, the CBRC issued the notice on expanding the pilot scope of pension financial products, which expanded the pilot scope from “four places and four institutions” to “ten places and ten institutions”.
Industry and company dynamics
1) on February 25, the China Banking and Insurance Regulatory Commission and the Ministry of housing and urban rural development issued the guidance on bank insurance institutions supporting the development of indemnificatory rental housing, calling for giving full play to the advantages of various institutions and further strengthening financial support. 2) On February 21, the central bank and the China Banking and Insurance Regulatory Commission jointly held a symposium and proposed that all commercial banks, rural credit cooperatives and other institutions with physical outlets must handle RMB cash deposit and withdrawal business. 3) This week, Bank Of Communications Co.Ltd(601328) successfully issued 30 billion yuan of secondary capital bonds Agricultural Bank Of China Limited(601288) 2022: the issuance of 50 billion yuan of non fixed term capital bonds was completed Hua Xia Bank Co.Limited(600015) released the annual performance express of 2021. In 2021a, the operating revenue was 95.870 billion yuan (+ 0.59%, YoY), and the net profit attributable to the parent company was 23.535 billion yuan (+ 10.62%, YoY).
Data tracking
This week, the A-share banking index fell by 3.68%, 2 percentage points lower than the CSI 300 index, and the rise and fall of the sector ranked 23 / 30, among which Bank Of Suzhou Co.Ltd(002966) (- 0.56%), China Minsheng Banking Corp.Ltd(600016) (- 1.51%) and China Zheshang Bank Co.Ltd(601916) (- 1.70%) fell slightly.
Open market operation: the central bank conducted a total of 810 billion yuan of reverse repo in the open market this week, and a total of 50 billion yuan of reverse repo expired, so a net investment of 760 billion yuan this week; Next week, 810 billion yuan of reverse repo will expire in the open market.
Shibor: Bank Of Shanghai Co.Ltd(601229) inter-bank lending rate trend upward, overnight Shibor interest rate upward 12bp to 2.23%, 7-day Shibor interest rate upward 22bp to 2.32%.
Investment suggestions:
This week’s annual report on financial management was released. The steady expansion of the bank’s financial management market and the continuous improvement of various transformations also reflect the broad prospects of wealth management; At the same time, this week, the down payment ratio of housing loans in some regions was reduced + the mortgage interest rate was reduced, and the marginal loosening of policies in the real estate field helped to improve market expectations and support the credit supply this year. In the follow-up, the overall sector still has policy support. Next week, the performance period of the annual report in March will enter, and the fulfillment of bank performance will continue to support the valuation repair of the sector. We maintain the “recommended” rating of the sector and continue to recommend at the individual stock level: China Merchants, Ping An, Societe Generale, Ningbo, Chengdu, Hangzhou, Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) etc.
Risk tips:
1) the downward pressure on the economy continues to increase, and the credit cost has increased significantly;
2) the business differentiation of small and medium-sized banks, major business insurance of individual banks, etc.
