Industry core view:
The growth rate of social financing and credit in February was lower than the market expectation, and the year-on-year decrease in new credit and off balance sheet discount was the main drag factor. In terms of real estate, the policy is obviously relaxed, but due to the influence of demand side factors, the credit is dragged down or sustained. The progress of subsequent financial expansion needs to be observed. In terms of monetary policy, it may be advanced due to the recurrence of China’s epidemic. 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 fell 4.61%, ranking 17th among 30 primary industries. The CSI 300 index fell 4.22%, and the sector lost 0.39 percentage points to the CSI 300 index. Since the beginning of the year, the banking sector as a whole has fallen by 1.11%, ranking second among the 30 primary industries. The CSI 300 index has fallen by 12.83%, and the banking sector has outperformed the CSI 300 index by 11.72 percentage points. In terms of individual stocks, last week, in the banking sector, Agricultural Bank Of China Limited(601288) , China Construction Bank Corporation(601939) and Bank Of Beijing Co.Ltd(601169) fell slightly.
Liquidity and market interest rate: last week, the central bank recovered a net 330 billion yuan through open market operation. The actual issuance scale of interbank certificates of deposit was 629 billion yuan, with an average coupon rate of 2.54%. The issuance scale rebounded and the issuance interest rate was basically the same.
Industry and company highlights:
Industry highlights:
On March 11, 2022, the central bank released financial statistics for February. Highlights of the company: Ping An Bank Co.Ltd(000001) : the annual performance report for 2021 was issued on March 10.
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.
