① On the afternoon of January 12, Changshu Bank issued an announcement stating that some of the bank's directors and supervisors increased their total holdings of 692,200 shares from January 8 to 12 this year, with a total increase of 4.446 million yuan. ② Since the beginning of the year, the overall performance of bank stocks has been good, and many banks have begun to increase their holdings one after another. In addition to Jiangyin Bank's plan to increase executive holdings, Great Wall Life has just listed the Bank of Wuxi.
Financial Services Association, January 12 (Reporter Peng Kefeng) The capital market has also seen bank executives take the initiative to increase their holdings.
On the afternoon of January 12, Jiangsu Changshu Rural Commercial Bank Co., Ltd. (hereinafter referred to as Changshu Bank) issued an announcement stating that some directors, supervisors and senior management of the bank increased their total holdings by 692,200 shares from January 8 to 12 this year, for a total increase of 4.446 million yuan. A Finance Association reporter noticed that this is also the second listed bank since the beginning of the year after Jiangyin Bank to announce that directors and supervisors have initiated an increase in their holdings.
After a lapse of nearly three years, the directors and supervisors of Changshu Bank spent 4.44 million yuan to increase their holdings in the Bank
Although it was not disclosed in advance, there are signs that Changshu Bank executives will increase their holdings this time. According to the official website of the Shanghai Stock Exchange, on January 11, 2024, Changshu Bank director Xue Wen increased his holdings of the company by 501,000 shares through secondary market transactions. The average transaction price was 652 yuan/share, increasing his holdings by 326,700 yuan. Furthermore, according to Changshu Bank's official statement, after the implementation of this increase was completed, the holding entity held a total of 1.8873 million shares of the Bank, accounting for 0.06% of the company's total share capital.
A Financial Services News reporter noticed that as of today's close, Changshu Bank's stock price has turned red, surging 2.29% and remaining at 6.70 yuan. If you calculate today's latest stock prices, some of the executives have already made a profit. Take Xue Wen as an example. The transactions were all lower than the latest stock price of 0.48 yuan.
Furthermore, according to public reports, the last time Changshu Bank's directors and supervisors took the initiative to increase their holdings dates back to 2021. On the evening of August 20, 2021, Changshu Bank announced that 11 directors and supervisors, including Chairman Zhuang Guangqiang, Executive Director (Governor), Xue Wen, Supervisory Director, Huang Yongbin, Deputy Governor Fu Jin, Chen Ren, Yin Xianzhu, Wu Tiejun, Bao Jian, Secretary of the Commission for Discipline Inspection Zhang Kangde, Assistant Governor Meng Jiong, and Executive Director (Board Secretary) Sun Ming, spent a total of 6.8291,000 yuan to increase their holdings of the company by more than 1.09 million yuan. Among them, Chairman Zhuang Guangqiang, President Xue Wen, and Supervisory Director Huang Yongbin all invested about 1 million yuan, and the increase in shares was locked in for 6 months from the date of purchase. This means that after a lapse of 3 years, Changshu Bank's directors and supervisors took another step.
Judging from the news, at the beginning of January this year, Citi released a report saying that large state-owned banks and small banks with differentiated business models are better positioned to gain market share, and are recommending buying large state-owned banks, mainly because of high interest rates and low valuations; buying high-quality regional banks to balance risk. The bank's first choice is CCB and Changshu Bank.
Since the beginning of the year, the banking sector has been very lively
A Financial Services Association reporter noticed that since the beginning of the year, bank stocks have performed well overall. At one point, they became a sector with little prosperity in the stock market, and some banks also started increasing their holdings one after another.
Earlier, Jiangsu Jiangyin Rural Commercial Bank Co., Ltd. disclosed information about plans by some directors, supervisors, senior management and core key personnel to increase their shares in the bank. Jiangyin Bank said that some of the bank's directors, supervisors, senior management and key personnel plan to increase the bank's stock holdings by no less than 10 million yuan and no more than 20 million yuan by purchasing convertible corporate bonds and transferring shares or centralized bidding from the secondary market. The implementation period for this plan to increase holdings is six months from January 9, 2024.
However, on January 12, when some investors asked Jiangyin Bank questions about increasing their holdings of directors and supervisors on the interactive platform, Jiangyin Bank replied that the Bank will disclose the progress and results of the increase in holdings in accordance with the provisions of the “Self-Regulatory Guidelines for Listed Companies No. 10 - Share Change Management”. Currently, the bank's specific increase in holdings is unknown.
Apart from taking the initiative of directors and supervisors to increase their holdings, shareholders of listed banks have also recently begun to increase their holdings. On the evening of January 11, the Bank of Wuxi issued an announcement that Great Wall Life Insurance Co., Ltd. already holds 107,646,274 shares of the Bank, accounting for 5.00% of the Bank's total share capital. According to relevant regulations, Great Wall Life Insurance's shareholding ratio has already met the listing requirements. This means that Great Wall Life has recently increased its holdings in the Bank of Wuxi.
Why have many banks recently started increasing their holdings one after another? In response, a banking analyst at a brokerage firm told the Financial Association reporter that undervaluation and stable high dividends are the biggest characteristics of bank stocks. Among A-share listed banks, many banks have dividend rates of over 7% in 2022, far exceeding the bank's financial management level. However, due to various reasons, the value of bank stocks has always been undervalued. From this perspective, Changshu Bank, Jiangyin Bank, etc. are also making decisions based on confidence in the development of their own banks. In a situation where high dividends have recently become a hot topic in the market, this move is also expected to attract the attention of more investors and form healthy interactions.
On January 12, Jiangyin Bank also clearly stated on the investor interactive platform that “some of the Bank's directors, supervisors and core personnel plan to increase their holdings of the Bank based on confidence in the Bank's future development prospects and recognition of the company's value.”
Furthermore, recent research reports from several brokerage teams also remain optimistic about bank trends this year. According to a research report recently released by Ma Kunpeng's team at CITIC Construction Investment Securities, it is expected that the decline in interest spreads in the banking sector in 2024 may be narrower than in 2023, and it is expected to show an “L-shaped trend” as the economic recovery trend gradually improves.