Industry core view:
Last week, the financial stability and Development Commission of the State Council held a special meeting to study the current economic situation and capital market issues. The Federal Reserve raised interest rates as scheduled. The epidemic situation in China has rebounded significantly. The two banks officially released their performance reports. 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 0.17%, ranking fifth among 30 primary industries. The CSI 300 index fell 0.94%, and the sector outperformed the CSI 300 index by 0.77%. Since the beginning of the year, the banking sector as a whole has fallen by 1.28%, ranking second among the 30 primary industries. The CSI 300 index has fallen by 13.65%, and the banking sector has outperformed the CSI 300 index by 12.37 percentage points. In terms of individual stocks, last week, in the banking sector, China Merchants Bank Co.Ltd(600036) , Bank Of Communications Co.Ltd(601328) and Bank Of Chengdu Co.Ltd(601838) led the gains.
Liquidity and market interest rate: last week, the central bank invested a net 90 billion yuan through open market operation. The average issuance scale and the actual interest rate of inter-bank notes remained stable at 63.06 billion yuan.
Industry and company highlights:
Industry highlights:
On March 17, 2022, the people’s Bank of China approved the establishment license of two financial holding companies.
Company highlights:
China Merchants Bank Co.Ltd(600036) : the annual performance report for 2021 was issued on March 19.
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.
