Industry core view:
On December 24, the monetary policy committee of the central bank held its regular meeting for the fourth quarter of 2021. A prudent monetary policy should be flexible and appropriate, be more forward-looking, accurate and independent, give full play to the dual functions of the aggregate and structure of monetary policy tools, be more proactive and promising, increase support for the real economy, maintain reasonable and sufficient liquidity, and enhance the stability of the growth of total credit, We will maintain a basic match between the growth of money supply and the scale of social financing and economic growth, maintain a basically stable macro leverage ratio, enhance the resilience of economic development and stabilize the macro-economic market. 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 China Citic Bank Corporation Limited(601998) index fell by 0.76%, the CSI 300 index fell by 0.67%, and the plate lost 0.09% of the CSI 300 index, ranking 17th among 30 primary industries. Since the beginning of the year, the banking sector has risen by 1.09% as a whole, and the CSI 300 index has fallen by 5.56%. The banking sector has outperformed the CSI 300 index by 6.65 percentage points, ranking 20th among 30 primary industries. In terms of individual stocks, last week, the banking sector, Jiangsu Zijin Rural Commercial Bank Co.Ltd(601860) , Bank Of Chengdu Co.Ltd(601838) and China Citic Bank Corporation Limited(601998) led the gains.
Liquidity and market interest rate: last week, the central bank invested a net 50 billion yuan through open market operation. The actual issuance scale of interbank certificates of deposit was 569.6 billion yuan, with an average coupon rate of 2.77%. The issuance scale and interest rate rebounded slightly.
Industry and company highlights:
Industry highlights:
On December 25, the monetary policy committee of the people’s Bank of China held a regular meeting for the fourth quarter of 2021.
Company highlights:
Industrial Bank Co.Ltd(601166) : the announcement on public issuance of convertible corporate bonds was issued on December 23.
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.
