Financial Services Association, April 16 (Reporter Cao Yunyi) After the four major state-owned banks disclosed the increase in the holdings of the Central Huijin Investment Company, the banking sector experienced outstanding performance for two consecutive working days, which is particularly evident today. Today, A-shares are in deep correction. The Shanghai Index fell 1.65% today. In Shenwan's Tier 1 industry, banks ranked first with a 0.03% increase.

Recently, the real estate and trust industry is still exposed to risks, and the defensive nature of banks is more favored by capital and has become the focus of attention. The industry said that under the current trend trend of interest rates, the banking sector's high dividend allocation value is still prominent. Against the backdrop that the current “asset shortage” pressure has not been significantly mitigated, the price difference between A-share listed banks' dividend rates and 10-year treasury bond yields is still at an all-time high. Until the spread returns to the average, the banking sector is still highly attractive in terms of allocation.

Huijin's increase in holdings boosted the stock prices of major state-owned banks

The Shanghai Index fell 1.65% today. In Shenwan's Tier 1 industry, banks ranked first with a 0.03% increase, once again demonstrating their resistance to falling. The overall banking sector rose 2.03% yesterday, driving the Shanghai Index to rise 1.26% on the same day.

Today, the stock prices of the four major banks of industry, agriculture, China, and construction led the rise in the afternoon. A total of 10 stocks rose in the banking sector. Among them, Agricultural Bank performed well. Today, the Agricultural Bank led 1.37% and closed at 4.43 yuan. The intraday stock price hit a record high of 4.46 yuan. The Bank of China and the Postbank bucked the trend and closed up more than 1%, while Industrial and Commercial Bank, China Construction Bank, and Bank of Communications followed the lead.

Today, only net capital inflows into the banking sector. Agricultural Bank has the highest net inflow of capital. Today's net inflow of capital is 149 million yuan, followed by Bank of China and Bank of Jiangsu, with net inflows of 135 million yuan and 56.423,000 yuan respectively.

According to the news, on April 12, the four major state-owned banks disclosed the increase in the holdings of the Central Huijin Investment Company. Following October 2023, Huijin once again increased its shares in the four major banks within half a year. This time, it held more than 1 billion shares in the four major banks. The banking sector performed well in the following two working days. Historically, after Huijin increased its holdings of the four major banks, the stock price often rebounded clearly within 1-3 months.

The market anticipates that Huijin's increase in holdings will attract more investors' attention and investment in state-owned banks, thereby boosting stock prices in the banking sector. Yang Delong, chief economist at Qianhai Open Source Fund, said that while Huijin continues to increase its holdings of the four major banks, it also sends a signal of maintaining market stability, it also helps to improve the stock price performance of the four major banks. Furthermore, it also releases to the market that more attention can be paid to stocks with high dividend rates.

Liquidity recovered in the second quarter, and dividend allocation value is still prominent

Under the current downward trend in interest rates, the banking sector's high dividend allocation value is still prominent. In March, the north-south capital of the Shanghai-Shenzhen-Hong Kong Stock Connect favored the defensive value sector, and bank stocks became the focus of capital. Entering the second quarter, the market still favors high-dividend banking sectors that can be attacked and defended in terms of allocation.

“In the current market environment, market liquidity has been effectively restored, and a number of reform measures have been introduced to address the problems revealed in the capital market. ” Senior market analyst Wu Xuan analyzed that in the past two or three years, along with the successive sinking of various themed tracks, the banking sector has been undervalued and lower, while the dividend rate is between 4% and 5%, which has a dual advantage and has become a safe haven for safe-haven investment.

Wang Yifeng, chief financial analyst at Everbright Securities, believes that in the current context where the “asset shortage” pressure has not been significantly alleviated, the difference between the dividend rate of A-share listed banks and the 10-year treasury bond yield is still at an all-time high. Before the spread returned to the average, the banking sector was still highly attractive as a fixed income type with steady profit growth, high dividend rates, and low valuation fluctuations.

According to the Huatai Securities Research Report, since the beginning of the year, the banking sector has had outstanding relative earnings compared to the Shanghai and Shenzhen 300, leading the growth rate of regional banks, which have both high dividends and steady operation characteristics. The market pays close attention to banks' dividend attributes and asset quality performance in key areas. Although short-term performance of some high-quality companies is under pressure, increasing dividend ratios has effectively boosted market sentiment.

“The banking sector will also usher in better investment opportunities in the future, especially as the market value management of central state-owned enterprises is included in the assessment and the continuous deepening of the supervisory concept to guide value investment.” Wu Xuan said.