The Zhitong Finance App learned that the increase in domestic bank stocks increased at the end of the session. As of press release, Bank of China (01216) rose 4.92% to HK$0.32; Minsheng Bank (01988) rose 3.36% to HK$2.77; Bank of Communications (03328) rose 2.45% to HK$5.01; CCB (00939) rose 1.48% to HK$4.8; and ICBC (01398) rose 1.27% to HK$3.97.

According to the news, the market quoted interest rate (LPR) for loans with a term of 5 years or more was 3.95% in February, compared to 4.2% last month; 1-year LPR was 3.45%, compared to 3.45% last month. Morgan Stanley published a report saying that the five-year LPR rate reduction of the People's Bank of China was the biggest in history, and far exceeded market expectations. The one-year LPR remained unchanged, which was slightly beyond expectations. The bank still expects open market operation (OMO) or medium-term loan facilitation (MLF) interest rates to be lowered by a total of 20 BP for the rest of the year to support further moderate net interest spreads and LPR adjustments.

CITIC Construction Investment said that the credit growth and structure in January exceeded expectations, and the bank started well and had plenty of credit reserves. It is expected that in 2024, credit investment will gradually enter a new stage of stable quantity and quality, which will help unify the market's expectations for economic recovery and benefit the bank's big beta market. Liao Zhiming, chief banking analyst at China Merchants Securities, said that looking ahead to 2024, interest spreads are expected to narrow, pressure on asset quality still exists, and the performance of listed banks is still under pressure. However, currently, banking sector valuations and institutional holdings ratios are at historically low levels. Steady growth is increasing. The economy may stabilize in the future, and banking sector valuations are expected to recover moderately.