Focus:
On January 6, the press conference of China Banking and Insurance Regulatory Commission introduced the recent operation of the banking industry. By the end of November 2021, the total domestic assets of the banking industry were 335.2 trillion yuan and the total liabilities were 306.2 trillion yuan, with a year-on-year increase of 7.6% and 7.4% respectively. The non-performing loan ratio of the banking industry was 1.89%, a decrease of 4bp compared with the beginning of the year, and the provision coverage rate was 192.9%, an increase of 10PCT compared with the beginning of the year.
Industry and company dynamics
1) on January 7, the central bank issued the notice on supporting cross-border RMB settlement of new foreign trade formats (Draft for comments). 2) On January 4, the central bank and others issued the overall plan for the construction of science, innovation and financial reform pilot zone in Jinan, Shandong Province; The central bank and others printed and distributed the plan for Chengdu and Chongqing to jointly build a western financial center. 3) On January 4, the China Banking and Insurance Regulatory Commission issued the measures for the supervision of IT outsourcing risks of banking and insurance institutions to strengthen the supervision ability of IT outsourcing risks of banking and insurance institutions. 4) On 6 January, The national development and Reform Commission issued the catalogue list of operating service charges set by the government (version 2022), clarifying the charging standards of service charges of card issuing banks for bank card swiping transactions. 5) on January 7, Puyin wealth management, a wholly-owned subsidiary of Shanghai Pudong Development Bank Co.Ltd(600000) , was approved by the bank insurance Regulatory Commission to start business, with a registered capital of 5 billion yuan and a registered place in Shanghai. 6) banks intensively disclosed the situation of convertible bonds to shares this week; Bank Of Chengdu Co.Ltd(601838) It is expected that the net profit attributable to the parent company will increase by RMB 1.085-1.507 billion year-on-year in 2021, with a year-on-year increase of 18% – 25%; China Zheshang Bank Co.Ltd(601916) the president increased 284100 shares, with an amount of 1 million yuan; Bank Of Qingdao Co.Ltd(002948) implemented the share allotment from January 5 to 11, and the share allotment price was 3.2 yuan / share; Mr. Luo Mengbo resigned as vice chairman and President of the company.
Data tracking
This week, the A-share banking index rose by 2.87%, outperforming the Shanghai and Shenzhen 300 index by 5.25 percentage points, ranking 4 / 30 in the rise and fall of the sector, among which Postal Savings Bank Of China Co.Ltd(601658) (+ 8.24%), Industrial Bank Co.Ltd(601166) (+ 7.14%) and Bank Of Chengdu Co.Ltd(601838) (+ 6.75%) were the top gainers.
Open market operation: a total of 700 billion yuan of reverse repo expired in the open market of the central bank this week, and a total of 40 billion yuan of reverse repo was carried out, so a net return of 660 billion yuan this week; There will be 40 billion yuan of reverse repo and 500 billion yuan of MLF due in the open market next week.
Shibor: Bank Of Shanghai Co.Ltd(601229) inter-bank lending rate trend downward, overnight Shibor interest rate down 29BP to 1.84%, 7-day Shibor interest rate down 16.8bp to 2.10%.
Investment suggestions:
At the industry level this week, the regulatory data showed that the growth rate of banking expansion slowed down at the end of November last year, and the asset quality was slightly disturbed month on month. At the same time, the industrial regulatory policies continued to find out and make up deficiencies, and further standardized the fields of financial support, foreign trade, financial technology outsourcing, service charges and so on. At present, the sector valuation corresponding to PB has rebounded slightly to 0.65 times, which is still at a historical low. It is suggested to continue to pay attention to the spring market of the sector under the overweight of counter cyclical regulation, select individual stocks, and continue to recommend: China Merchants, Ping An, Societe Generale, Ningbo, Chengdu, Hangzhou, Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) .
Risk tips:
1) the downward pressure on the economy continued to increase, and the credit cost increased significantly;
2) business differentiation of small and medium-sized banks, major business risks of individual banks, etc.
