Li Ka-shing made a big move and suddenly reduced her Hong Kong bank stock holdings and cashed out more than 100 million Hong Kong dollars.

1

Li Ka-shing reduced his holdings in this company

On May 11, the Hong Kong Stock Exchange revealed that the Li Ka-shing Foundation reduced its Postbank shares by 22.5 million shares at an average price of HK$5.43 per share. According to estimates, a total of HK$122 million was cashed out this time. Following this reduction in holdings, Li Ka-shing's shareholding ratio in Postbank dropped from 10.08% to 9.97%.

The Li Ka Shing Foundation first disclosed that it had reduced its Postbank holdings in September of last year. On September 29, 2022, it sold 50,000 Postbank shares at an average price of HK$4.71 per share. After completion, the number of shares held was 2,184 million shares.

People involved in the Postbank investor relations management said that the Li Ka Shing Foundation has always maintained a good relationship with the Postbank, and the Foundation has no opinion on the operation and development of the Postbank. The foundation was established to promote charitable projects. All investment income is used for charitable purposes. The reduction of the Foundation's shares in Postbank is a daily financial arrangement.

In the first quarter of this year, Postbank's operating income was 88.163 billion yuan, an increase of 3.51% over the previous year. Among them, net revenue from fees and commissions was 11.586 billion yuan, an increase of 27.50% over the previous year. The share of net income from fees and commissions increased 2.47% year-on-year; net profit attributable to bank shareholders was 26.28 billion yuan, an increase of 5.22% over the previous year.

Recently, the A-share banking sectortranspiresThe market is rising, and bank ETFs are inFrom April 28 to May 8, the increase was nearly 10% in 4 trading days.

(The content of this article is a list of objective data and information and does not constitute any investment advice)

The current round of banking sector markets mainly benefited from the catalysis of the China Special Evaluation Concept, the continuation of the superimposed steady growth policy, and the performance of some banks in the first quarter of 2023, which exceeded expectations. Recently, there has been a high level of market attention. Specifically, there is a high level of market attention. Specifically:

The dividend rate of the banking sector is currently 3.53%, ranking 4th in the first-tier industry. Return to the mother's net profit has maintained positive growth for 3 consecutive years, with an average ROE of 10.15%. Ranked 8th in the Tier 1 industry. Looking at segments and individual stocks, the dividend rates of state-owned banks, stock banks, urban commercial banks, and agricultural commercial banks were 3.28%, 3.99%, 4.11%, and 3.94%, respectively; the dividend rates of 20 listed banks exceeded 5%.

Judging from performance, the performance growth rate of listed banks has slowed, the pattern of differentiation continues, and the performance of some banks has exceeded expectations. In the first quarter of 2023, the cumulative operating income of 42 listed banks was 1.5 trillion yuan, a year-on-year decrease of 4.39%, and the cumulative net profit returned to the mother was 574.296 billion yuan, an increase of 2.09% over the previous year, all lower than the growth rate in 2022.

Looking at the company level, banks such as Bank of Xi'an, Bank of Qingdao, Bank of Changshu, Bank of Changsha, Bank of Lanzhou, Bank of China, and Bank of Jiangsu had the highest revenue growth rate, with a year-on-year growth rate of more than 10%; Bank of Hangzhou, Bank of Jiangsu, Bank of Wuxi, Bank of Suzhou, and Bank of Changshu had the highest net profit growth rate of more than 20% over the previous year.

2

Foreign investment and 10 billion private equity are optimisticMid-term evaluation

Today's mid-year special estimate received support from various sources of funding, making it one of the most beautiful star sectors in the market. How do foreign investors view sectors unique to China?

Well-known foreign-funded institutions have expressed relevant opinions,Mu Tianhui, chief stock strategist at Goldman Sachs Asia Pacific, said in an interview with the media that the current Asia-Pacific stock market13The valuation of price-earnings ratio is reasonable when looking at the overall situation, while the Chinese stock market is relatively undervalued. If market confidence improves and the profits of the most critical companies can rise further, then there is still room for the market to recover, so Goldman Sachs continues to overallocate the Chinese market.

In terms of global stock positions, according to the agency's statistics, active long-term investors are still at a low level of allocation to the Chinese market. Meanwhile, according to Goldman Sachs data, global investors sold Asian stocks net after the pandemic. Excluding the Chinese market, the overall net sales were about 114 billion US dollars, but so far they have only bought back about 22 billion US dollars; currently, global public fund holdings in the Chinese market are only at the level of 23% over the past ten years.

Specifically, which direction you are optimistic about,Mu Tianhui, chief equity strategist at Goldman Sachs Asia PacificOptimistic about high-quality state-owned enterprises, they believe that the average price-earnings ratio of Chinese state-owned enterprises over the next year will be 6.1 times, while the price-earnings ratio of private enterprises will be 15.4 times. A report previously released by the World Bank shows that if reforms promote better economic growth, the total market value of Chinese state-owned enterprises may increase by 20%.

Furthermore, hundreds of private equity firms responded to the “China Special Assessment” market: 54% of private equity firms believe that the “China Special Valuation” market can continue. Driven by multiple factors such as state-owned enterprise reform, ROE increases, high dividend rates, and valuation repairs, “China Special Valuation” may become one of the main lines throughout this year.It is worth mentioning that in this statistic, currently only 5% of private equity firms believe that the “medium valuation” market has come to an end.

3

The capital went up to 11.8 billion dollars!

The market experienced rapid adjustments on May 10, but sentiment did not cool down.The stock ETF market as a whole is showing a “fall the more you buy” trend. Judging from the data of all stock ETF funds,The total net capital inflow on that day exceeded 11.8 billion yuan.It recorded the second largest net inflow in a single day since this year.

Looking at the style, capital generally favors broad-based indices. Many mainstream broad-based ETFs, such as the Huaxia SSE 50 ETF, the Huatai Berry Shanghai and Shenzhen 300 ETF, the Huaxia SSE Science and Technology Innovation Board 50-component ETF, and the E-Fonda GEM ETF, had the highest net inflows of capital; in specific industry indices, capital outflows occurred. Infrastructure ETFs, non-bank ETFs, securities ETFs, dividend ETFs, etc. that were previously sought after by capital came out first.

After experiencing a wave of sharp increases, the undervaluation industry's value hollow was cleared, and many funds felt that it was more difficult to invest, so they chose Clear.”“Light industry selection” shifts from the configuration of the “big index”, and from the configuration of the industry to the allocation of the index.

This change in style reflects that there are some differences in current market capital.Some institutions said that the current steady operating performance has provided a basis for market recognition for the valuation restructuring of central state-owned enterprises. Judging from the perspective of profitability, there has been a clear steady recovery in ROE of central state-owned enterprises in recent years. Currently, it has surpassed other types of enterprises and is higher than the average level of A-shares, showing the strong “value creation” ability of central state-owned enterprises. However, there are also opinions that we should wait and see and be cautious now.

The market is a multi-layered ecosystem, always moving forward in diverse games. There are no absolute right or wrong opinions. A mature investor can always let go freely and find their own balance in all kinds of differences. The famous American writer Fitzgerald famously said, “You can act normally if you have two diametrically opposite ideas at the same time. This is a sign of first-class wisdom.”