Focus:
1) on March 16, the financial stability and Development Commission of the State Council held a special meeting to study the current economic situation and capital market problems. “One bank, two sessions” and other meetings were held to convey the spirit of the meeting of the financial committee and make arrangements for its implementation.
2) on March 17, the central bank announced that it had approved the establishment license of China CITIC Financial Holding Co., Ltd. and Beijing Financial Holding Group Co., Ltd.
Industry and company dynamics
1) on March 16, the CBRC said that in 2021, it would continue to increase the credit supply of small and micro enterprises, optimize the credit structure of small and micro enterprises, and strongly support the sustained recovery and high-quality development of the real economy. 2) On March 18, the central bank, together with the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission, issued the opinions on financial support for the high-quality development of Zhejiang and the construction of a demonstration area for common prosperity. 3) This week China Merchants Bank Co.Ltd(600036) released the annual report of 2021. In 2021a, the operating revenue was 331253 billion yuan (+ 14.04%, YoY), and the net profit attributable to the parent company was 119922 billion yuan (+ 23.20%, YoY) Shanghai Pudong Development Bank Co.Ltd(600000) released the annual performance express of 2021. In 2021a, the operating revenue was 190982 billion yuan (- 2.75%, YoY), and the net profit attributable to the parent company was 53.003 billion yuan (- 9.12%, YoY). 4) This week Industrial Bank Co.Ltd(601166) was approved to issue 40 billion yuan of financial bonds for three years Bank Of Beijing Co.Ltd(601169) the board of directors and the general meeting of shareholders deliberated and approved the proposal to elect Mr. Huo Xuewen as the chairman of the board; Next week, there are Industrial Bank Co.Ltd(601166) , China Citic Bank Corporation Limited(601998) , Industrial And Commercial Bank Of China Limited(601398) and other annual reports to be disclosed.
Data tracking
This week, the A-share bank index fell by 0.17%, outperforming the CSI 300 index by 0.77 percentage points, ranking 5 / 30 in the rise and fall of the sector, among which Bank Of Chongqing Co.Ltd(601963) (+ 6.75%), China Merchants Bank Co.Ltd(600036) (+ 3.87%) and Bank Of Communications Co.Ltd(601328) (+ 1.66%) led the rise.
Open market operation: this week, the central bank conducted a total of 140 billion yuan reverse repurchase, 200 billion yuan MLF and 70 billion yuan treasury cash deposit operation in the open market, a total of 50 billion yuan reverse repurchase and 100 billion yuan MLF expired, and a full caliber net investment of 260 billion yuan in the open market. The central bank will have 140 billion yuan of reverse repo maturing in the open market next week.
Shibor: this week, the trend of Bank Of Shanghai Co.Ltd(601229) inter-bank lending rate declined as a whole. The overnight Shibor interest rate fell 6BP to 1.99%, and the seven-day Shibor interest rate fell 3bp to 2.07%
Investment suggestions:
At the regulatory level this week, the first two financial holding companies were approved to be established, marking that the financial holding companies have entered a new stage of licensed and compliant operation; Benefiting from the stability maintenance signal transmitted by the meeting of the financial committee, the market sentiment has obviously warmed up, and the capital outflow from the banking sector has slowed down. With the addition of the quarterly performance of the annual report, the company has achieved relative returns as a whole. Under the policy underpinning and stable economic expectation, we maintain the “recommended” rating of the industry and continue to recommend at the individual stock level: China Merchants, Ping An, Societe Generale, Ningbo, Chengdu, Hangzhou, Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) etc.
Risk tips:
1) the downward pressure on the economy continues to increase, and the credit cost has increased significantly;
2) business differentiation of small and medium-sized banks, major business risks of individual banks, etc.
