Investment summary:
Talk every Monday: banks issue real estate M & A bonds to help resolve risks
Event: on December 20, 2021, the central bank and the China Banking and Insurance Regulatory Commission issued the notice on doing a good job in M & a financial services for risk disposal projects of key real estate enterprises, encouraging banks to carry out M & a loan business in a stable and orderly manner, and focusing on supporting high-quality real estate enterprises to merge and acquire high-quality projects of large real estate enterprises in danger and difficulties.
Since the beginning of 2022, many banks have responded to the call and planned to issue real estate M & a themed bonds. The total scale of the announced plan is about 28 billion yuan. The bank’s support for the M & a capital demand of real estate enterprises helps to resolve the risk.
On January 21, Shanghai Pudong Development Bank Co.Ltd(600000) completed the bookkeeping and filing of 5 billion yuan real estate project M & a theme bonds, which is the first real estate project M & a theme bond issued by financial institutions.
On January 27, Guangdong Development Bank announced that it plans to issue 5 billion yuan of Real Estate Project M & a theme bonds in the near future, and the raised funds are specially used for Real Estate Project M & A loans.
On February 15, Ping An Bank Co.Ltd(000001) announced that it planned to launch the issuance of the first 5 billion yuan real estate M & a theme bonds in the near future, and the raised funds were specially used for the investment of M & A loans for real estate projects.
On February 17, Industrial Bank Co.Ltd(601166) announced that according to the market demand and business development needs, it is planned to issue real estate M & a theme bonds of no less than 10 billion yuan.
On February 24, Bank Of Shanghai Co.Ltd(601229) announced that it plans to launch the issuance of financial bonds in the near future and issue 3 billion yuan of Real Estate Project M & a theme bonds. The raised funds are specially used to support high-quality real estate enterprises to merge and acquire high-quality projects of large-scale real estate enterprises with risks and difficulties.
With the encouragement of policies, real estate M & A financing accelerated China Merchants Bank Co.Ltd(600036) granted the M & A financing quota of 20 billion yuan to China Resources Land and 3 billion yuan to China Resources Vientiane life respectively in January, which is dedicated to the M & a business of China Resources Land and China Resources Vientiane life. In February, China Merchants Bank Co.Ltd(600036) granted the M & A financing quota of 10 billion yuan to Grandjoy Holdings Group Co.Ltd(000031) holding for M & a business. The accelerated landing of real estate M & A is expected to help real estate enterprises speed up risk clearance and improve the quality of bank assets.
Investment strategy: with the gradual implementation of the policy, the expectation of loose real estate policy is gradually heating up, the expectation of steady economic growth is strengthened, and the quality of bank assets is expected to be improved. It is suggested to pay attention to banks with excellent fundamentals and annual report exceeding expectations, such as Postal Savings Bank Of China Co.Ltd(601658) , China Merchants Bank Co.Ltd(600036) , Ping An Bank Co.Ltd(000001) , Industrial Bank Bank Of Ningbo Co.Ltd(002142) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , etc.
Important developments: on February 21, Industrial Bank Co.Ltd(601166) announced that from January 13 to February 18, 2022, heads of some subsidiaries, branches and departments of the head office (including their spouses and children) voluntarily purchased 169329 million shares of the company’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.
Market review:
Performance of sector & individual stocks: this week, the banking sector fell – 3.68%, underperforming the Shanghai and Shenzhen 300 index by 2 percentage points. Banks rose or fell 23 / 30. Among them, state-owned banks fell – 3.28%, joint-stock banks fell – 3.67%, urban commercial banks fell – 4.09%, and rural commercial banks fell – 4.03%. In terms of specific stocks, 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%) decreased the least, and Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) (- 6.61%), Bank Of Ningbo Co.Ltd(002142) (- 5.86%) and Bank Of Hangzhou Co.Ltd(600926) (- 5.67%) decreased the most.
Northbound capital flow: northbound capital has accumulated a net outflow of – 6.413 billion yuan this week, a net purchase of 1.933 billion yuan this month, and a net purchase of 18.707 billion yuan since the beginning of the year. Among them, the cumulative net outflow of the banking sector this week was -30.59 yuan, ranking 29 / 30. In terms of specific stocks, Postal Savings Bank Of China Co.Ltd(601658) , Bank Of Nanjing Co.Ltd(601009) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) received the most net purchases. In terms of shareholding ratio of land stock connect, Ping An Bank Co.Ltd(000001) (9.24%), China Merchants Bank Co.Ltd(600036) (8.19%), Postal Savings Bank Of China Co.Ltd(601658) (7.91%) land stock connect holds the highest proportion of circulating a shares.
Risk warning: policy risk; The risk of macroeconomic recovery falling short of expectations; The global covid-19 epidemic continues to deteriorate.
