On December 6, the bank index closed up 0.29%, achieving four consecutive positive results.
17 of the 34 listed banks rose. Among them, Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.Ltd(601528) rose 3.111%, Ping An Bank Co.Ltd(000001) rose 2.55%, Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) rose 1.24%, Bank Of Chengdu Co.Ltd(601838) rose 1.23%.
On December 6, the central bank decided to reduce the deposit reserve ratio of financial institutions by 0.5 percentage points on December 15, 2021 (excluding financial institutions that have implemented the 5% deposit reserve ratio). The RRR reduction will reduce the capital cost of financial institutions by about 15 billion yuan per year.
Analysts said that the RRR reduction will benefit the banking sector from three aspects: volume, price and risk evaluation. In terms of “volume”, Anxin Securities believes that the market’s expectation of steady growth has been strengthened by using the RRR reduction tool. It is expected that the low-cost and long-term limited funds released after the implementation of the RRR reduction will provide support for bank credit. In terms of “price”, Citic Securities Company Limited(600030) believes that under the background of reducing the financing cost of the real economy, the interest rate of the whole financial system shows a downward trend, and the cost of bank liabilities is expected to decline. In terms of risk evaluation system, the real estate industry risk is further mitigated, which will drive the upward repair of the valuation of the sector.
China Merchants Securities Co.Ltd(600999) Liao Zhiming, chief analyst of banking industry, said that the RRR reduction is not a “unilateral profit transfer” of banks, but will improve the overall profitability of banks. According to the data of the past 15 years, the average increase of the bank index in December was about 5.9%. It is also expected to start the valuation switching market in December this year.
At present, the valuation of the banking sector is low, and the price to book ratio of the banking sector is only 0.64 times.
The low valuation of banks attracted funds. According to the latest data from the Hong Kong stock exchange, on November 29, JPMorgan increased its holdings of China Merchants Bank Co.Ltd(600036) H shares by 1743800 shares, priced at HK $60.72 per share. After the increase, the latest shareholding number was about 367 million shares, with the latest shareholding ratio of 8%.
Bank stocks have also become the “new favorite” of some star fund managers. Zhao Feng of Ruiyuan fund bought China Merchants Bank Co.Ltd(600036) 372 million yuan in early September. According to the third quarterly report of Ping An Bank Co.Ltd(000001) , e fund blue chip selection and e fund high-quality selection managed by Zhang Kun have become the top ten circulating shareholders of Ping An Bank Co.Ltd(000001) .
In addition, since this year, the bank’s shareholders and executives have greatly increased their holdings of bank shares, Postal Savings Bank Of China Co.Ltd(601658) , Bank Of Communications Co.Ltd(601328) , Hua Xia Bank Co.Limited(600015) , China Zheshang Bank Co.Ltd(601916) , Ping An Bank Co.Ltd(000001) and other major shareholders or executives of the bank have increased their holdings of shares out of their own pocket.
China Securities Co.Ltd(601066) said it was optimistic about the structural market of the banking sector and recommended three investment lines: first, the route of big wealth + big investment bank, focusing on excellent joint-stock banks with good customer base, strong team ability, flexible and efficient product and organizational structure; The second is to operate the regional route and recommend urban commercial banks with good competition pattern and superior light capital business ability; Third, the Pratt & Whitney small and micro business line recommends investors to select high-quality banks from the targets of “doing the best”.
(Shanghai Securities News)
