China mainland banking stocks rose across the board, with CM Bank up 2.89% to HK$30.3; Postal Savings Bank of China up 1.94% to HK$4.21; Bank of China up 1.76% to HK$3.46; Bank of Communications up 1.89% to HK$5.39.
China mainland banking stocks are generally rising, as of press time, with a 2.89% increase, closing at HKD 30.3; $CM BANK (03968.HK)$ with a 1.94% increase, closing at HKD 4.21; $PSBC (01658.HK)$ with a 1.76% increase, closing at HKD 3.46; $BANK OF CHINA (03988.HK)$ $BANKCOMM (03328.HK)$ The price rose by 1.89%, reaching 5.39 Hong Kong dollars.
On the news front, on September 13, the central bank released the August 2024 social financing and financial statistics. The stock of social financing increased by 8.1% year-on-year in August, with new social financing of 3029.8 billion yuan and new RMB loans of 900 billion yuan. Minsheng Securities pointed out that at this stage, the growth rate of total financial indicators has stabilized, and the central bank has stated that its stance on monetary policy remains unchanged, providing positive support for stable economic growth. On the other hand, government investment has continued to increase, which is expected to provide some support for social financing. Due to expectations of interest rate cuts for existing home loans and the disclosure of interim results, the sector has recently experienced some pullback. However, in the process of stabilizing and improving the economy, high dividend value in the banking sector remains attractive.
On the other hand, Orient Securities stated that in Q3, attention should be paid to the possibility of accelerating fiscal pace. Considering the impact of policies such as anti-shadow banking measures and manual interest rate cuts, it is expected that social financing and credit data will stabilize and rebound, and the fundamental performance of the banking industry is expected to remain stable throughout the year without dividend concerns. Considering the expectations of a September interest rate cut by the Federal Reserve and the pressure of domestic economic operation, the bank predicts that an interest rate cut policy is expected to be introduced in October, and the broad spectrum of interest rates in the whole society will still decline, with bank stocks expected to outperform again in terms of excess returns.
Editor/Rocky