Industry core view:
The 2022 government work report sets the economic growth target at 5.5%, slightly higher than the market expectation. It is proposed to “expand the scale of new loans”, guide more funds to key areas and weak links, and expand the coverage of Inclusive Finance. We will promote financial institutions to reduce real loan interest rates and charges, so that the majority of market participants can personally feel the improvement of financing convenience and the real decline of comprehensive financing costs. There is still room for the market’s expected policies such as RRR reduction, interest rate reduction and refinancing, and the rhythm depends on the economic recovery. Recently, the banking sector has adjusted. In the medium and long term, we believe that the internal differentiation of the banking sector will continue. It is suggested to pay attention to the banks whose proportion of intermediate business income continues to increase and the banks whose fundamentals continue to improve.
Key investment points:
Market performance: last week, the China Citic Bank Corporation Limited(601998) index rose 0.07%, ranking 11th among 30 primary industries. The CSI 300 index fell 1.68%, and the sector outperformed the CSI 300 index by 1.75 percentage points. Since the beginning of the year, the banking sector has risen by 3.67% as a whole, ranking second among the 30 primary industries. The CSI 300 index fell by 8.99%, and the banking sector outperformed the CSI 300 index by 12.66 percentage points. In terms of individual stocks, last week, in the banking sector, Bank Of Nanjing Co.Ltd(601009) , Bank Of Suzhou Co.Ltd(002966) and Bank Of Jiangsu Co.Ltd(600919) led the gains.
Liquidity and market interest rate: last week, the central bank made a net return of 430 billion yuan through open market operation. The actual issuance scale of interbank certificates of deposit was 356.3 billion yuan, with an average coupon rate of 2.54%. The issuance scale fell and the issuance interest rate rebounded slightly.
Industry and company highlights:
Industry highlights:
On March 5, 2022, the fifth session of the 13th National People’s Congress opened at the Great Hall of the people in Beijing. Premier Li Keqiang delivered a government work report.
Company highlights:
Bank Of Shanghai Co.Ltd(601229) : on March 5, the announcement on the approval of the opening of the wholly-owned subsidiary Shangyin Financial Management Co., Ltd. was issued.
Risk factors:
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.
