The single-day trading volume of bank stocks has soared by nearly 90% and the net ratio is still as high as 75%
Our reporter Wu Shan
The Shanghai and Shenzhen stock indexes took on the upward momentum of the previous trading day, and both opened slightly higher yesterday, but were obviously blocked during the session. The bullish offensive is not as expected, hot spots are rapidly rotating and spreading, and the funds on the market are more inclined to the growth sector with deterministic policy catalysis and high prosperity. The areas where interim report performance exceeds expectations have become the focus of funding. Bank stocks had started a wave of rally before the market closed in the afternoon, and continued their strength in the afternoon, once again stabilizing the market.
"The strength of bank stocks is caused by the allocation of institutions." Hu Bo, manager of the Future Star Fund of Private Equity Rankings, said in an interview with a reporter from the Securities Daily. "In the recent period, the overall increase in bank stocks has not been large, but the valuation advantage is obvious. , Dividends are very stable, so it has a high allocation value. We are relatively optimistic about the increase in the valuation of bank stocks. On the one hand, it stems from the bank’s dominance in the financial field; on the other hand, after the Securities Regulatory Commission has issued brokerage licenses to commercial banks , Mixed operation is expected to increase the profit forecast of the banking industry and further catalyze the restoration of the valuation of the banking sector."
On August 4, the banking sector rose 2.1% overall, ranking first in Shenwan's first-tier industry, with a turnover of 38.168 billion yuan, an increase of 18.029 billion yuan from the 20.139 billion yuan turnover on August 3, an increase of 89.52%.
In terms of capital flow, on August 4, among the 28 Shenwan Tier 1 industries, only 4 industries showed a net inflow of large order funds. The banking sector steadily ranked first with a net inflow of large order funds of 3.831 billion yuan, far ahead of the ranking. The second is the construction and decoration industry (the net inflow of funds for large orders that day was 868 million yuan).
With the help of large funds, bank stocks were fully activated. On August 4th, 36 listed bank stocks went viral, Bank of Chengdu had a strong daily limit, and China Merchants Bank, Bank of Changsha, Bank of Ningbo, etc. also rose by more than 4%. At the same time, 35 bank stocks achieved consecutive gains, and 15 bank stocks, including Bank of Chengdu, China Merchants Bank, Changsha Bank, and Qingnong Commercial Bank, reached 3 consecutive days of gains.
Although the investment value of bank stocks has been affirmed by institutions, as of August 4, there are still 27 bank stocks whose latest price-to-book ratio is less than double, which is in a state of "breaking net", accounting for 75%. Among them, the latest P/B ratio of Hua Xia Bank is less than 0.5 times, which is only 0.48 times; the latest P/B ratios of Bank of Communications, Minsheng Bank, Bank of Beijing, and China CITIC Bank are also less than 0.6 times.
"In the past year or so, bank stocks have performed sluggishly, and the focus of their valuations has been shifting downwards. With the rising valuations of growth stocks, the current valuations of bank stocks are relatively attractive. In addition, China's economy is steadily improving. It is expected that the banking industry will maintain steady growth. We expect that the trend of bank stocks will improve in the long-term. We recommend that investors prefer high-quality large and medium-sized banks with low asset-liability ratios and non-performing assets ratios to actively intervene. "Yibo Investment Fund Manager Wang Yanglin Said in an interview with a reporter from the Securities Daily.
Not one institution is bullish on bank stocks. A reporter from the Securities Daily found out that in the past month, a total of 10 bank stocks have received high-frequency "likes" from institutions. Among them, the number of institutions giving favorable ratings to Bank of Jiangsu such as “buy” or “overweight” reached 4; the number of institutions giving favorable ratings to Zheshang Bank, Bank of Ningbo, Bank of Nanjing, and Bank of Hangzhou were no less than 2 In addition, the bank stocks that are favored by institutions include China Merchants Bank, Minsheng Bank, Industrial and Commercial Bank of China, Zijin Bank, and Qingnong Commercial Bank. (Securities Daily)