In the first two months of this year, foreign capital continued to increase its holdings of A-share banks. In mid and late February, the outbreak of the conflict between Russia and Ukraine triggered an expected deterioration. With the significant adjustment of the market, foreign capital significantly reduced its holdings of bank shares during the period (2.18-3.14). After the special meeting of the financial stability Commission in mid March, (3.15-4.11) foreign capital changed to increase its holdings of A-share banks again, and the proportion of foreign capital holdings rebounded significantly. In particular, urban and rural commercial banks with low proportion of foreign capital holdings in the total market value in the early stage were increased more.
From the change of the proportion of foreign capital holdings in the circulating market value, during the observation period (3.15-4.11), the largest increases were Jiangyin, Suzhou, Chongqing agricultural and commercial bank, Xiamen, Guiyang, etc. the proportion of foreign capital holdings in the total market value of these banks was low, all below 3%. In terms of large banks, the proportion of foreign capital holdings has continued to rise. The proportion of increased holdings of Bank of communications is the highest, with an increase of 0.27%. The increase of postal savings is slightly lower. Since this year, foreign capital has continued to increase its holdings of postal savings, and the range has slowed down since mid March. From the perspective of joint-stock banks, Everbright and China Merchants Bank increased their holdings more, while Societe Generale and CITIC increased their holdings less.
Reiterated the view that steady growth will continue to catalyze and continue to be optimistic about bank stocks. Individual stocks continue to recommend high-quality urban rural commercial bank: Bank Of Chengdu Co.Ltd(601838) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , Bank Of Jiangsu Co.Ltd(600919) etc., and core targets continue to recommend: Bank Of Ningbo Co.Ltd(002142) , China Merchants Bank Co.Ltd(600036) , Postal Savings Bank Of China Co.Ltd(601658) . When the market is weak, pay attention to the value of undervalued targets.
In late March, foreign capital began a new round of holdings in A-share banks
Since late March, bank stocks have continued the trend of this year and continued to increase their holdings of foreign capital. In the observation range (3.15-4.11), the Shenwan bank index rose by 7.24%, outperforming the wind all a index by 10.78 percentage points, and the increase of the bank index ranked third among Shenwan’s 31 industries; During this period, the shareholding ratio of foreign capital to A-share banks increased by 0.11 percentage points, ranking the sixth in Shenwan industry.
The number of individual shares reduced significantly
Among the 36 foreign-owned banks in the observation range (3.15-4.11), 6 were reduced by foreign capital, which was significantly lower than the 29 in the previous period (2.18-3.14). The stocks to be reduced are Nanjing, Chengdu, Zhangjiagang, Jiangsu, Ningbo and Changshu. The above-mentioned banks have increased significantly since mid March, all exceeding 9%. Among them, the proportion of domestic and foreign capital increase in Chengdu, Ningbo, Changshu and Zhangjiagang increased significantly in the last observation period. The reduction in this period may be due to the operation of foreign capital band, and the reduction will lock in income; Nanjing and Jiangsu were reduced by foreign capital for two consecutive observation periods.
Risk tip: the economy has fallen sharply and real estate risks have erupted in an all-round way.
