This week, the banking sector fell by 3.68% as a whole, losing the CSI 300 index by 1.67 percentage points. The top performers were: Bank Of Suzhou Co.Ltd(002966) (- 0.56%), China Minsheng Banking Corp.Ltd(600016) (- 1.51%), Shanghai Rural Commercial Bank Co.Ltd(601825) (- 1.63%).
The China Banking and Insurance Regulatory Commission and the Ministry of housing and urban rural development jointly issued the guidance on bank insurance institutions supporting the development of indemnificatory rental housing. As the key task of housing construction during the 14th Five Year Plan period, the supervision actively guides and increases the financial support for the development of affordable rental housing, and helps to expand the supply of affordable rental housing. The construction of affordable rental housing is expected to become an important starting point and focus of current steady growth.
The annual report of Bank Of China Limited(601988) financial management market (2021) was released. By the end of 2021, the scale of bank financial management market had reached 29 trillion yuan, a year-on-year increase of 12.14%.
The CBRC issued the notice on expanding the pilot scope of pension financial products. From March 1, 2022, the pilot scope of pension financial products will be expanded from “four places and four institutions” to “ten places and ten institutions”.
Investment suggestion: at present, the overall valuation of the banking industry (CITIC) is still at a historical low of about 0.64xpb/5.4xpe. At present, the steady growth policy continues to be implemented, the monetary policy is expected to be loose, and the follow-up policy is expected to make further efforts in the direction of stable aggregate and excellent structure. We continue to be positive about the valuation repair market of the banking sector under the background of steady growth. At the individual stock level, (1) focus on high-quality small and medium-sized banks in economically developed regions, and recommend Bank Of Jiangsu Co.Ltd(600919) , Bank Of Chengdu Co.Ltd(601838) , Bank Of Hangzhou Co.Ltd(600926) , Bank Of Nanjing Co.Ltd(601009) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , Bank Of Ningbo Co.Ltd(002142) . (2) Banks with leading strategy / business and excellent fundamentals, including Industrial Bank Co.Ltd(601166) , China Merchants Bank Co.Ltd(600036) , Postal Savings Bank Of China Co.Ltd(601658) .
Key news review: the central bank and China Banking and Insurance Regulatory Commission: continue to do a good job in cash supply and services; Central inspection team:
Systematically promote financial reform, development and stability; The Political Bureau of the CPC Central Committee: strengthen the prevention and control of financial risks and maintain the overall situation of financial stability; Cbcirc: encourage banking financial institutions to support affordable rental housing projects; Cbcirc: the pilot scope of pension financial products is expanded to “ten places and ten institutions” Hua Xia Bank Co.Limited(600015) approved non-public offering Bank Of Ningbo Co.Ltd(002142) preferred stock compulsory conversion price is lowered in accordance with the terms.
Capital price: this week, the exchange rate of RMB against the US dollar remained at 6.44, and the central bank invested 760 billion yuan in open market operation. The yield of 10-year Treasury bonds fell to 2.78%, and the yield to maturity of 10-year corporate bonds (AAA) rose to 3.77%. The local government debt interest spread widened and the credit interest spread of urban investment bonds narrowed.
Financial products: in the third week of February (February 14-february 20), 579 financial products were issued, 583 were due and 4 were net due. Compared with the previous week, the expected rate of return of financial products increased in 6 and 9 months. Among them, the expected rate of return of financial products increased the most in 9 months, with 15.0bps The expected rate of return of financial products decreased in 2 and 4 months. Among them, the expected rate of return of financial products decreased the most in four months, with 163.0bps.
Interbank certificates of deposit: the interest rates of interbank certificates of deposit in January, March and June this week (February 19-february 25) are 2.24% / 2.46% / 2.56% respectively. 690 interbank certificates of deposit were issued this week, raising 720.7 billion yuan. As of February 25, 2022, there were 16661 interbank certificates of deposit in stock, totaling 143164 billion yuan.
Risk tip: the quality of bank assets deteriorated beyond expectations, and the regulatory policies changed beyond expectations.
