On March 28, the A-share banking sector performed strongly, with 32 of the 42 stocks rising, China Citic Bank Corporation Limited(601998) , Xiamen Bank Co.Ltd(601187) , Qingdao Rural Commercial Bank Corporation(002958) up more than 3%.
Recently, a number of banks disclosed their annual reports for 2021, and their performance exceeded market expectations. The annual cash dividend ratio of some banks in 2021 hit a new high since listing.
The data also shows that some securities companies’ asset management, public funds and private funds increased their positions in bank stocks in the fourth quarter of 2021.
Recently, the bank index has returned to the rising channel. What is the follow-up trend?
China Citic Bank Corporation Limited(601998) led the rise
On March 28, the bank index (CITIC) rose 0.42%, and 32 of the 42 constituent stocks rose. China Citic Bank Corporation Limited(601998) rose by 6.36%, with the highest intraday increase of 7.24% Xiamen Bank Co.Ltd(601187) , Qingdao Rural Commercial Bank Corporation(002958) also increased by 5.19% and 3.20% respectively.
Since March 16, the banking sector has returned to the rising channel. As of March 28, the banking index (CITIC) has increased by 7.69%, and China Merchants Bank Co.Ltd(600036) , Bank Of Ningbo Co.Ltd(002142) , Bank Of Jiangsu Co.Ltd(600919) , China Citic Bank Corporation Limited(601998) , Bank Of Chengdu Co.Ltd(601838) has increased by more than 10%.
Some analysts believe that the recent good performance of the banking sector is not only related to the easing of risk aversion in the market, but also related to the higher than expected performance of many listed banks in 2021, as well as their undervalued value and high dividends.
As of March 28, 7 banks have disclosed their annual reports for 2021, including Ping An Bank Co.Ltd(000001) , China Merchants Bank Co.Ltd(600036) , China Citic Bank Corporation Limited(601998) , Industrial Bank Co.Ltd(601166) , Bank Of Communications Co.Ltd(601328) , China Everbright Bank Company Limited Co.Ltd(601818) , Bank Of Qingdao Co.Ltd(002948) , Bank Of Qingdao Co.Ltd(002948) .
Moreover, the cash dividends of listed banks are also awesome. For example, Industrial Bank Co.Ltd(601166) plans to pay out 1035 yuan per share, totaling 21.501 billion yuan, with a cash dividend ratio of 27.4%, the highest since its listing China Citic Bank Corporation Limited(601998) plans to distribute a cash dividend of RMB 3.02 per 10 shares to all shareholders, with a total cash dividend of RMB 14.778 billion.
Huaxin Securities believes that cash dividends of listed companies are one of the effective weights to attract long-term investment. From the perspective of traditional values, only companies with continuous cash dividends can have long-term investment value.
multi way capital holdings of bank shares
The capital of more than ten banks increased in the fourth quarter of 2021.
For example, Huatai Bairui dividend ETF (full name “SSE dividend trading open-ended index securities investment fund”) increased its position of 201306 million shares China Citic Bank Corporation Limited(601998) , which was promoted from the seventh largest circulating shareholder at the end of the third quarter of 2021 to the sixth largest circulating shareholder.
Citic Securities Company Limited(600030) excellent growth (full name ” Citic Securities Company Limited(600030) excellent growth stock collective asset management plan”) increased its position by 3783100 shares in the fourth quarter of 2021 Ping An Bank Co.Ltd(000001) , the number of shares held at the end of the period reached 50231000 shares, and the reference market value reached 828 million yuan.
Bank Of Qingdao Co.Ltd(002948) has also been favored by funds. Southern financial theme C (full name “Southern financial theme flexible allocation hybrid securities investment fund”) and southern China Securities 500etf (full name “China Securities 500 trading open index securities investment fund”) increased their positions by 18451100 shares and 634200 shares respectively in the fourth quarter of 2021, and pangzeng Jiji No. 25 private securities investment fund increased its positions by 153600 shares.
However, there are also funds to choose to reduce their holdings of bank shares. According to the data, e fund blue chip reduced its position by 12.001 million shares in the fourth quarter of 2021 Ping An Bank Co.Ltd(000001) . In the fourth quarter of 2021, the universal products under everyone insurance also reduced its holdings of 161 million shares China Merchants Bank Co.Ltd(600036) .
On the whole, listed banks are still one of the sectors favored by funds. According to the data, in the fourth quarter of 2021, Industrial And Commercial Bank Of China Limited(601398) , China Minsheng Banking Corp.Ltd(600016) , Bank Of Ningbo Co.Ltd(002142) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) and other stocks received a large increase in positions of public funds.
With the disclosure of annual reports by listed banks this week, the performance expectations have been fulfilled. Insiders said that the banking sector is expected to usher in investment opportunities.
Guotai Junan Securities Co.Ltd(601211) Securities said that at present, the banking sector is in the transition stage from promoting wide credit (expected) to realizing economic stabilization (cycle). It is expected that urban commercial banks and rural commercial banks will be more dominant in the internal sub sectors of banks in the first half of this year. Looking forward to the second half of the year, if consumption picks up and the economy stabilizes, the prosperity of national banks, especially joint-stock banks, will rebound significantly. From the perspective of the whole year, the prosperity of high-quality small banks is the highest.
