Industry core view:
The central economic work conference was held in Beijing from December 8 to 10. “Sound and effective” macro policies will be the focus of next year’s work. While maintaining steady growth, we will make corresponding adjustments to some cross cyclical structural adjustment policies. In addition, in terms of risk resolution, it is mentioned that resources should be prepared, and policies are expected to be launched in the future, which is expected to stabilize market confidence. The net interest margin of banks is at a low level, and the cost of capital needs to be further reduced to support the real economy. At present, the policy focuses on steady growth, and the expectation of stabilizing money and credit is clear. The internal division of the banking sector will continue. It is recommended to pay attention to the banks with the continuous increase of the proportion of intermediate business income and the banks with the continuous improvement of fundamentals.
Key investment points:
Market performance: last week, the bank index rose 2.36%, the CSI 300 index rose 3.14%, and the sector lost 0.78% of the CSI 300 index, ranking ninth among the 30 primary industries. Since the beginning of the year, the banking sector has risen by 4.22%, the Shanghai and Shenzhen 300 index has fallen by 3%, and the banking sector has outperformed the Shanghai and Shenzhen 300 index by 7.22 percentage points, ranking 17th among the 30 primary industries. In terms of individual stocks, last week, the banking sector, Industrial Bank Co.Ltd(601166) , China Merchants Bank Co.Ltd(600036) and Ping An Bank Co.Ltd(000001) led the gains.
Liquidity and market interest rate: last week, the central bank recovered 180 billion yuan through open market operation. The actual issuance scale of interbank certificates of deposit was 413.2 billion yuan, with an average coupon rate of 2.72%. The issuance scale rebounded, and the coupon rate was basically flat.
Industry and company highlights:
Industry highlights:
On December 9, the central bank issued the financial statistics report for November 2021.
Company highlights:
Industrial Bank Co.Ltd(601166) issue the announcement that the application for public issuance of A-share convertible corporate bonds has been examined and approved by the issuance examination committee of CSRC.
Risk factors:
The rapid clearing of debt risk led to a sharp rise in credit spreads. If the epidemic repeatedly causes the overall economy to continue to weaken, the enterprise revenue will deteriorate significantly, and the performance of the banking sector will fluctuate.
