Focus:
1) on April 6, the central bank and other departments announced the financial stability law of the people’s Republic of China (Draft for comments), which aims to establish a long-term mechanism to maintain financial stability and prevent and resolve financial risks.
2) on April 6, the Prime Minister presided over the national standing committee meeting, proposed the timely and flexible use of a variety of monetary policy tools, give better play to the dual functions of aggregate and structure, increase support for the real economy, and proposed the establishment of two special refinancing projects: scientific and technological innovation and inclusive pension.
Industry and company dynamics
1) on April 6, the CBRC issued the notice on the key work of comprehensively promoting rural revitalization in banking and insurance services in 2022, and put forward specific measures from the aspects of ensuring the stable growth of agricultural financial investment, optimizing the system and mechanism of agricultural financial supply, focusing on the key areas of Rural Revitalization, and improving the financial service level of new citizens. 2) On April 8, the CBRC issued the notice on further strengthening financial support for the development of small and micro enterprises in 2022. 3) This week, Industrial Bank Co.Ltd(601166) issued 11.5 billion yuan of financial bonds with a coupon rate of 2.94% China Everbright Bank Company Limited Co.Ltd(601818) plans to pay dividends on the preferred shares of luminescent Dayou 3 on April 18 Bank Of Chengdu Co.Ltd(601838) Mr. Wang Zhongqin resigned as assistant to the president due to job change Bank Of Ningbo Co.Ltd(002142) released the annual report. In 2021a, the operating revenue was 52.774 billion yuan (+ 28.37%, YoY), the net profit attributable to the parent company was 19.546 billion yuan (+ 29.87%, YoY), and the profit distribution plan was announced. 4) Next week, Jiangsu, Hangzhou and Bank Of Nanjing Co.Ltd(601009) will disclose their annual reports and Bank Of Nanjing Co.Ltd(601009) will disclose their quarterly reports.
Data tracking
This week (April 6-8), the A-share bank index rose by 1.15%, outperforming the Shanghai and Shenzhen 300 index by 2.21 percentage points, and the rise and fall of the sector ranked 6 / 30, among which Qilu Bank (+ 17.63%), Bank Of Nanjing Co.Ltd(601009) (+ 5.37%) and Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) (+ 4.94%) were the top gainers.
Open market operation: this week, the central bank conducted a total of 40 billion yuan of reverse repo in the open market, a total of 610 billion yuan of reverse repo expired, and a full caliber net return of 570 billion yuan in the open market. Next week, 40 billion yuan of reverse repo will expire in the central bank’s open market.
Shibor: this week, the trend of Bank Of Shanghai Co.Ltd(601229) inter-bank lending rate rose as a whole. The overnight Shibor interest rate rose by 44bp to 1.75%, and the seven-day Shibor interest rate rose by 15bp to 1.99%.
Investment suggestions:
At the policy level this week, a number of policies and regulatory guidelines, including the financial stability act, were released, involving key areas such as maintaining stability systemic risks, ensuring agriculture related and inclusive financial supply. At the same time, the national standing committee also further released the signal of stable growth, strengthening the market’s expectation of monetary policy overweight. At present, on the one hand, the expectation of the recent bank annual report is fulfilled, which supports the stabilization of the valuation of the sector; On the other hand, the current dividend yield of the sector is at an all-time high, and the investment cost performance is high on the basis of relatively uncertain performance. We maintain the “recommended” rating of the sector and continue to recommend at the individual stock level: China Merchants, Ping An, Societe Generale, Chengdu, Hangzhou, Ningbo, Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) etc; And suggest paying attention to big banks with high dividend yield.
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.
