Focus:
On December 6, the central bank decided to reduce the deposit reserve ratio of financial institutions by 0.5 percentage points on December 15. After the reduction, the weighted average deposit reserve ratio of financial institutions was 8.4%, releasing a total of about 1.2 trillion yuan of long-term funds.
Industry and company dynamics
1) On December 6, the Political Bureau of the CPC Central Committee held a meeting to analyze and study the economic work in 2022; From December 8 to 10, the central economic work conference was held in Beijing to deploy economic work in 2022. 2) The central bank released the financial and social finance data in November: the credit supply was stable in November, and the growth rate of social finance was supported by corporate and government bonds. 3) This week Industrial And Commercial Bank Of China Limited(601398) was approved to issue tier 2 capital bonds of no more than 190 billion yuan, Bank Of Suzhou Co.Ltd(002966) was approved by the central bank to issue no more than 6 billion yuan of non fixed term capital bonds, China Merchants Bank Co.Ltd(600036) completed the issuance of 43 billion yuan of non fixed term capital bonds, Industrial Bank Co.Ltd(601166) shareholder Fujian Provincial Department of finance has completed the transfer registration procedures for free transfer and enrichment of social security fund shares, At present, Fujian Provincial Department of finance holds 3.915 billion shares (accounting for 18.85%).
Data tracking
This week, the A-share banking index rose 2.36%, underperforming the CSI 300 index by 0.79 percentage points, ranking 9 / 30 in the rise and fall of the sector, among which Industrial Bank Co.Ltd(601166) (+ 6.12%), China Merchants Bank Co.Ltd(600036) (+ 4.37%) and Xiamen Bank Co.Ltd(601187) (+ 4.34%) were the top gainers.
Open market operation: this week, a total of 230 billion yuan of reverse repurchase in the open market expired, and the central bank conducted a total of 50 billion yuan of reverse repurchase, with a net return of 180 billion yuan; A reverse repurchase of 50 billion yuan will expire next week. Among them, 10 billion yuan will expire from Monday to Friday, and 950 billion yuan of MLF will expire next Wednesday (December 15).
Shibor: Bank Of Shanghai Co.Ltd(601229) inter-bank lending rate trend differentiation, overnight Shibor interest rate down 10.6bp to 1.81%, 7-day Shibor interest rate up 10.6bp to 2.18%.
Investment suggestions:
This week, although the financial data in November showed that the financing demand was still weak, from the comprehensive RRR reduction to the Politburo meeting and the central economic work meeting, a number of policy guidelines were intensively implemented, the positive signals were clear, the market expectations were improved, and the bank valuation ushered in a strong policy boost. At present, the corresponding Pb of the sector valuation is only 0.63 times, which is at the historical bottom range. Under the condition that the performance has strong certainty and the continuous implementation of the growth protection policy, the sector valuation will continue to be repaired. Continue to recommend: China Merchants, Ping An, Xingye, Chengdu, Hangzhou, Changsha, Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) etc.
Risk tips:
1) The downward pressure on the economy continued to increase, and the credit cost increased significantly;
2) Business differentiation of small and medium-sized banks, major business risks of individual banks, etc.
