With the backdrop of an “asset scarcity,” desirable assets in the market are becoming increasingly rare, leading investors to shift their focus to bank stocks that feature high dividends, resulting in a sustained rise in bank stocks and creating a notable market trend.
(Bank Index Trend from the Beginning of the Year to Present)
Among individual stocks, as of the close on July 10, MINSHENG BANK (600016) rose over 5%, Industrial And Commercial Bank Of China (601398) increased by 2.8%, Bank Of Ningbo (002142) and Hua Xia Bank (600015) both rose over 2%, while CM BANK (600036) and Bank Of China (601988) grew by more than 1%.
In the Hong Kong stock market, Bank Of Zhengzhou (06196) increased by over 6.8%, MINSHENG BANK (01988) rose by more than 4.3%, China CITIC Bank Corporation (00998) increased by 3.63%, while Bank Of Chongqing (01963) and CEB BANK (06818) both rose by more than 2%, and Agricultural Bank Of China (01288), Postal Savings Bank Of China (01658), China Construction Bank Corporation (00939), and Industrial And Commercial Bank Of China (01398) all saw increases exceeding 1.5%.
The window period for disclosing performance forecasts is approaching.
The window period for the concentrated disclosure of mid-term performance forecasts in the banking industry is coming soon, and a series of core indicators together build a solid foundation for the high-dividend investment value of bank stocks, making it a key focus for the market.
The stability of operational performance is the fundamental support for high dividends. In recent years, influenced by factors such as the reduction of LPR and the asset side being repriced faster than the liability side, banks’ net interest margin has narrowed, putting significant pressure on revenue. However, this year, the pace and extent of interest rate cuts have slowed, and the negative impact of declining asset-side yields on net interest margins is expected to marginally weaken.
The stability of asset quality is the ballast for sustainable performance. In the first quarter of 2025, most listed banks’ non-performing loan ratios are in a stable or improving range.
Considering the views of multiple securities firms, institutions generally believe that the first quarter has reached the revenue low point for listed Banks. As the mid-year reporting period approaches, Banks’ revenue growth is expected to show a slight marginal recovery driven by net interest income, and there is consistent bullish sentiment towards the Banking Industry.
Xiangcai Securities stated that the solid fundamentals of Banks help strengthen the valuation safety net for the Sector. Under the support of relaxed fiscal policies and various financing arrangements, Bank credit supply remains relatively sufficient, expected to maintain stable growth in credit. At the same time, the policy’s positive attitude towards stabilizing interest margins, as well as the improved efficiency of interest rate transmission on both sides of Bank assets and…
Read More: 【Popular Industry】Bank stocks continue to hit record highs, Institutions
