Focus:
1) on January 14, the central bank and the CIRC issued the administrative measures for acceptance, discount and rediscount of commercial bills (Draft for comments).
2) as of this week, Societe Generale, Jiangsu, Changshu, Sunong, CITIC, Qingdao, Ping An, China Merchants and Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) 9 listed banks have successively disclosed the performance express of 2021. The overall growth rate of revenue and profit has increased month on month, and the non-performing and provision indicators have continued to improve.
Industry and company dynamics
1) on January 12, the central bank released the financial and social finance data for December 2021: credit continued to be weak in December, and the growth rate of social finance supported by local bonds continued to rise. 2) On January 14, the CBRC issued the measures for the administration of connected transactions of banking and insurance institutions and answered reporters’ questions. 3) This week Industrial Bank Co.Ltd(601166) was approved by the China Banking and Insurance Regulatory Commission to issue financial bonds of no more than 110 billion yuan, and issued tier 2 capital bonds of 25 billion yuan on January 14; Bank Of Nanjing Co.Ltd(601009) the board of directors deliberated and approved the issuance of write down non fixed term capital bonds of no more than 20 billion yuan; Ping An Bank Co.Ltd(000001) the board of directors deliberated and approved the proposal on dividend distribution plan for preferred shares, paying a dividend of RMB 4.37 per share, totaling RMB 874 million; Bank Of Qingdao Co.Ltd(002948) the first 1.631 billion restricted shares (accounting for 36.17% of the total shares) will be listed and circulated on January 17. The increase of shares held by Intesa Sanpaolo Bank of Italy has been approved by Qingdao banking and Insurance Regulatory Bureau, and the shares held after the increase will not exceed 17.50% of the total shares.
Data tracking
This week, the A-share bank index fell by 1.02%, outperforming the Shanghai and Shenzhen 300 index by 0.96 percentage points, ranking 11 / 30 in terms of rise and fall, among which Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) (+ 7.62%), Bank Of Chengdu Co.Ltd(601838) (+ 6.95%) and Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) (+ 5.13%) were the top gainers.
Open market operation: this week, the central bank carried out a total of 50 billion yuan of reverse repurchase in the open market, with a total of 40 billion yuan of reverse repurchase expiring, so a net investment of 10 billion yuan this week. There will be 50 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 rose, the overnight Shibor rate rose 37bp to 2.21%, and the seven-day Shibor rate rose 11bp to 2.21%.
Investment suggestions:
This week, the central bank disclosed that the financial data in December showed that the credit demand at the end of the year was still weak, and the introduction of regulatory policies for bill business will reduce the business risks such as Bill violations and arbitrage. This week’s bank performance express catalyzed the sector to continue to obtain relative returns. At present, the sector valuation corresponds to only 0.64 times of Pb. Under the expected improvement of policy underpinning economy and industry prosperity, it has a high cost performance. It is recommended to continue to pay attention to the sector valuation repair market under counter cyclical regulation and overweight, and continue to recommend: China Merchants, Ping An, Xingye, 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.
