In March, similar to the A-share banking sector, the H-share share price of mainland banks also suffered a “cold spring”. As of Tuesday’s close, H shares of mainland banks had fallen by an average of 6.54% in the month, of which H shares of eight banks had fallen by more than 10%.
“In the first two months of this year, H-share listed banks rose as a whole, and the adjustment in March was profit taking for the continuous rise. In addition, the Hong Kong stock market was affected by both A-Shares and US stocks, so H-share listed banks were also more impacted.” Lu Changshun, chief researcher of Shanghai Zhonghe Yingtai Financial Consulting Co., Ltd., said in an interview with the reporter of Securities Daily that the lack of liquidity and light transactions in the Hong Kong stock market directly led to the general decline of H-share prices of listed banks.
On Monday, the Hang Seng Index fell below the 20000 mark. The life of H-share listed banks in March was not easy. After the rapid progress in the first two months, there was a sharp decline in the whole month.
So far, there are 32 listed banks from the mainland in H shares. Statistics show that since March, the average decline of H-share listed banks has reached 6.54%. Among the 32 h shares of listed banks, 26 had negative monthly gains and losses, accounting for 80%, of which 8 had a decline of more than 10%. In another five months, the rise and fall were flat. Since March, only Shanxi commercial bank has maintained a “red” share price, up 2.92%.
The Hang Seng China Banking index fell significantly in March after hitting a new high in nearly a year in February. As of the closing on March 15, the index had fallen by 9.11% in the month.
After the deep correction in March, the shares of H shares of most listed banks were at the floor price. Among the 32 H-share listed banks, only China Merchants Bank Co.Ltd(600036) , Jiujiang bank’s H-share price is above HK $10; Nine H-share listed banks closed at less than HK $2; The H-share price of Zhongyuan bank and Harbin Bank fell below 1 yuan and became a fairy share. In addition, the H-share prices of Bank of Gansu and Bohai bank are only one step away from HK $1.
The performance of H shares of listed banks was sluggish in March, resulting in the high premium rate of ah shares. Among all 15 “a + H” listed banks, except for the upside down of a and H shares of China Merchants Bank Co.Ltd(600036) the A shares and H shares of other banks are in a premium state. The premium rates of a and H shares of Bank Of Chongqing Co.Ltd(601963) , Bank Of Zhengzhou Co.Ltd(002936) are more than 100%, 141.25% and 119.58% respectively.
Jiang Han, senior researcher of Pangu think tank, told the reporter of Securities Daily that the current weak trend of H-share listed banks is mainly caused by panic. The valuation of H shares of listed banks is generally low. From the disclosed performance express data, the valuation has been seriously underestimated, but it still does not rule out that there is still room for decline in the future.
LV Changshun believes that at present, the risk appetite of Hong Kong stock market and A-share market is not the same. A-share investors prefer to “fry small” and are not particularly “cold” for large bank stocks. The Hong Kong stock market is relatively mature. As a bank stock with relatively abundant liquidity, it is generally dominated by institutional investors. In addition, the factors of the same shares and the same rights will lead to the downturn of the share price of H shares.
Since March, the hot events of H-share listed banks have continued. First, the share price of Bohai bank suddenly collapsed in early March, and then the merger of Zhongyuan bank.
On the first trading day of March, the share price of H shares of Bohai bank changed, with a decline of 23.85% at one time, and finally closed at HK $0.99/share. The bank announced that night that “the bank’s business operation remains normal and is full of confidence in the future development prospects.” Some experts once told the reporter of Securities Daily that the stock price of Bohai bank fluctuated sharply, or it was caused by the stop loss operation of some institutions holding the bank.
As one of the few H-share listed banks whose share price did not fall in March, Zhongyuan bank came with good news. The bank had previously said that it planned to absorb and merge three provincial urban commercial banks, such as Bank of Luoyang, Pingdingshan bank and Jiaozuo China Travel bank. Recently, the above three absorbed banks simultaneously disclosed through the official website that the merger has been deliberated and approved at the general meeting of shareholders held by each bank.
It is understood that Zhongyuan bank will issue additional domestic shares to absorb and merge the above three provincial and urban commercial banks, with a subscription amount of about 28.47 billion yuan.
