Industry core view:
On April 15, the central bank announced that it would cut the deposit reserve ratio of financial institutions by 0.25 percentage points on April 25, slightly lower than market expectations. The regulator said that the current liquidity has been at a reasonable and sufficient level and will continue to implement a prudent monetary policy. In the future, we will pay close attention to the changes in price trends and the adjustment of monetary policies in major developed economies, taking into account internal and external balance. At present, the valuation of the banking sector is still at a historical low, so it is recommended to continue to pay attention.
Key investment points:
Market performance: last week, the China Citic Bank Corporation Limited(601998) index fell 0.2%, ranking eighth among 30 primary industries. The CSI 300 index fell 0.99%, and the sector outperformed the CSI 300 index by 0.79 percentage points. Since the beginning of the year, the banking sector has risen by 4.48% as a whole, ranking third among the 30 primary industries. The CSI 300 index has fallen by 15.21%, and the banking sector has outperformed the CSI 300 index by 19.69 percentage points. In terms of individual stocks, last week, in the banking sector, Bank Of Chengdu Co.Ltd(601838) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) and Bank Of Nanjing Co.Ltd(601009) led the gains.
Liquidity and market interest rate: last week, the central bank invested a net 20 billion yuan through open market operation. The actual issuance scale of interbank certificates of deposit was 607.5 billion yuan, with an average coupon rate of 2.46%. The issuance scale rebounded sharply, and the issuance interest rate remained basically stable.
Industry and company highlights:
Industry highlights:
The people’s Bank of China decided to reduce the deposit reserve ratio of financial institutions on April 25, 2022.
Company highlights:
Bank Of Nanjing Co.Ltd(601009) : the first quarter performance report of 2022 was released on April 16.
Risk factors:
If the epidemic repeatedly causes the overall economy to continue to weaken, the enterprise revenue will deteriorate significantly, and the performance of the banking sector will fluctuate.
