The banking sector as a whole has performed poorly this year.

As of the close on June 2, the stock prices of 13 banks have retreated by more than 10%, and some of them have fallen by more than 20%.

　　However, many bank executives and employees are buying more and more, and they have increased their holdings of their own stocks, showing firm confidence in the company's continued development in the future.

Bank stocks fell in shock

　　Since the beginning of the year, the banking sector has not been optimistic.

Wind data shows that as of the close on June 2, the stock prices of 22 listed banks fell and 13 rose, and the valuation of the price-to-book ratio of the banking sector fell to 0.58, the lowest level in the past three years.

From January 4th to June 2nd, bank stocks fell by 6.27%, with an amplitude of 17.87%, showing a volatile downward trend as a whole.

Since entering the second quarter, bank stocks have entered a unilateral downward channel, but the decline has gradually narrowed, and the recent sideways fluctuation trend is obvious.

　　From the perspective of individual stocks, since the beginning of the year, 24 of the 42 listed banks have shown a downward trend in their share prices.

Among them, Ruifeng Bank has fallen by 24.78% compared with the beginning of the year, China Merchants Bank has fallen by 20.10%, and 13 banks including Bank of Ningbo and Bank of Qingdao have fallen by more than 10%.

　　After the market closed on June 2, Ruifeng Bank announced that it planned to take measures to increase the stock holdings of the then directors (except independent directors) and senior managers who received remuneration from the bank to stabilize the stock price.

The total amount of shares purchased by the then directors (excluding independent directors) and senior executives who received remuneration from the bank shall not be less than 15% of the total after-tax remuneration they received from the bank in the previous year, but the shareholding ratio shall not be less than 15% Or the quantity should comply with the regulations of the relevant regulatory authorities.

The total amount of this increase is not less than 1.0298 million yuan.

　　It is worth noting that the stock prices of some regional city commercial banks rose against the trend, and the market performance was eye-catching.

The stock price of Bank of Chengdu has risen by 28.33% since the beginning of the year, and the upward trend of Bank of Nanjing is also more obvious, with an increase of more than 20%.

In addition, Jiangyin Bank and Jiangsu Bank also rose by more than 15%.

Several bank executives increased their holdings

　　The reporter combed and found that since the beginning of this year, executives and important shareholders of more than 10 banks have taken action to protect the market.

　　A few days ago, Wang Liang, the new president of China Merchants Bank, spent 766,600 yuan to increase his holdings of 20,000 A shares of China Merchants Bank.

According to Wind statistics, since 2018, Wang Liang has increased his holdings of China Merchants Bank 10 times.

After this increase in holdings, Wang Liang's latest holdings of China Merchants Bank shares reached 270,000 shares. According to the closing price of China Merchants Bank on June 2 at 38.92 yuan per share, Wang Liang's stock market value has exceeded 10 million yuan.

　　Since the beginning of this year, it is not only China Merchants Bank that executives have added their own money to protect the market.

According to statistics, executives of more than ten banks, including Zheshang Bank, Industrial Bank, Chongqing Bank, and Zijin Bank, have taken relevant measures.

　　At the beginning of this year, Zheshang Bank issued an announcement saying that the company received a letter of notification from executive director and president Zhang Rongsen to increase its holdings of the company's A shares by 284,100 shares at a price of 3.52 yuan per share and an increase of 1 million yuan.

After the increase in holdings, Zhang Rongsen holds 1,022,100 A shares of Zheshang Bank, accounting for 0.0048% of the total share capital.

　　Societe Generale is even rarer.

In February this year, Industrial Bank issued an announcement stating that the heads of some subsidiaries, branches and headquarters of Industrial Bank (including their spouses and children) voluntarily purchased 16.9329 million shares of Industrial Bank from the secondary market with their own funds at the transaction price. The range is 20.36 yuan to 23.08 yuan per share.

　　The research team of Zheshang Securities Bank pointed out that the collective voluntary purchase by the middle-level cadres of Industrial Bank, on the one hand, shows the confidence of the middle-level cadres in the bank's operation and management, and on the other hand, it also means that the employees are more motivated to do a good job in the operation.

The positive significance of the collective increase of employees' holdings this time is even stronger than that of the management.

Bank's future performance growth can be expected

　　Dong Ximiao, chief researcher of China Merchants Union Finance, said that in the medium and long term, we should maintain a cautiously optimistic attitude towards bank stocks.

"The amount of funds held by senior executives is limited, and the actual effect in the short term is not obvious, but it conveys long-term confidence in the future development of the bank and the rise in stock prices. Increasing credit is an important measure for the country to stabilize the economy, and the growth of bank performance can be expected."

　　Some people in the industry also said that with the easing of the epidemic and the implementation of policies to stabilize growth, banks are expected to increase volume and stabilize prices and maintain stable asset quality in the second half of the year.

However, considering that there are large differences in regional credit demand, customer base, and stock asset quality, and the marketization of deposit interest rates tests the ability of each bank to acquire deposits, the differentiation among banks may continue.

　　Guosen Securities pointed out that it is expected that the fundamentals of the banking industry will be stable in 2022. At present, the valuation of the sector is at a low level, and the valuation advantage is obvious. It is expected that the stable growth policy will continue to increase in the future, which will help improve the expectations of the banking sector.

In terms of individual stocks, we focus on banks with better regional economies, strong profitability, and performance growth that ranks among the top in the industry, as well as banks with advantages in serving manufacturing and financing for housing companies.