The index of the banking sector rose and fell sharply this week (3.14-3.18), and recovered to the index level at the beginning of the week. As of the last trading day of the week, the price to book ratio was lf0.5% 62pb, the valuation level was close on a weekly basis, and the market heat increased. The average daily trading volume was 1109.1 billion yuan (on a weekly basis + 2.1%). This week, the central bank invested 190 billion yuan in a wide range (including 7-day reverse repo), and the 7-day reverse repo interest rate remained at 2.10%. The overall liquidity was at a good level; On Friday (March 18), it was announced that the weighted value of dr007 was 2.06%, slightly lower than the reverse repo rate, with good overall liquidity and good conduction of interest rate guidance level.
After the panic, the quality of value is more sufficient. This week, the valuation level of China Citic Bank Corporation Limited(601998) sector rebounded sharply for two consecutive days on Thursday and Friday after a sharp decline in the whole market at the beginning of the week, which was in line with the expectations at the beginning of the week. In the first three working days, due to the continuous release of emotional pressure brought by geopolitics and imported inflation of bulk commodities, the banking sector has declined significantly with the whole market. With the speeches and tone setting of stabilizing the military heart at the levels of regulatory authorities and Jin Wenhui, we believe that at this stage, the confidence of investors will gradually recover, and the oversold share price will be rediscovered in time. In addition, the gold stability meeting requires relevant departments to earnestly assume their responsibilities, actively introduce policies conducive to the market and carefully introduce contractionary policies. We should respond to the hot issues concerned by the market in a timely manner. All policies that have a significant impact on the capital market should be coordinated with the financial management department in advance to maintain the stability and consistency of policy expectations. The positive, stable, continuous and friendly policies provide important support for economic recovery, especially economic development under the epidemic, and provide more support for China’s economy to overcome the epidemic.
The financial stability board set the thinking and requirements for future economic development. With regard to macroeconomic operation, we must implement the decision-making and deployment of the Party Central Committee, earnestly invigorate the economy in the first quarter, actively respond to monetary policies, and maintain a moderate growth in new loans. With regard to real estate enterprises, we should timely study and put forward effective risk prevention and resolution solutions, and put forward supporting measures for the transformation to a new development model. With regard to China concept shares, at present, the regulatory authorities of China and the United States have maintained good communication, have made positive progress, and are working to form a specific cooperation plan. The Chinese government continues to support all kinds of enterprises to list abroad. With regard to the governance of platform economy, relevant departments should improve the established plan in accordance with the principles of marketization, legalization and internationalization, adhere to seeking progress in stability, steadily promote and complete the rectification of large platform companies as soon as possible through standardized, transparent and predictable supervision, and set up red and green lights to promote the steady and healthy development of platform economy and improve international competitiveness. On the stability of Hong Kong’s financial market, the mainland and Hong Kong regulators should strengthen communication and cooperation. The policy expectation is more friendly. We believe that the profit expectation of the banking industry continues to improve, there is enough room for rebound, and maintain the “recommended” rating. Market performance
The banking sector index fell 0.17% this week, outperforming the market. This week, the Shanghai Composite Index fell 1.77%, the Shenzhen Component Index fell 0.95%, the gem index rose 1.81%, and the Shanghai and Shenzhen 300 index fell 0.94%. The recommendations focus on high-quality joint-stock banks ( ‘ Tsingtao Brewery Company Limited(600600) 36 , Bank Of Nanjing Co.Ltd(601009) , Bank Of Shanghai Co.Ltd(601229) , Shanghai Rural Commercial Bank Co.Ltd(601825) and Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) ).
Risk tips
Repeated epidemic risk, tightening monetary policy, increasing risk of non-performing rate, outbreak of major risks and events of default, etc.
