CITIC SEC: Bank stocks' valuation is backed by fundamentals, cementing dividend yield space certainty.

Breakings ·  Jun 17 08:21
CITIC SEC stated that last week's pullback in the banking sector reflects the market's cautious expectations for May financial data and real economy performance. We believe that financial data may fluctuate with strengthened financial supervision and expect the impact to last until June. Looking ahead, optimization of financial and real economy alignment will strengthen financial stability, making financial support for the real economy more sustainable. We think that multiple policy efforts in the early stage will help improve bank risk expectations, and bank stocks' valuation will be more fundamentally supported, cementing dividend yield space certainty. For individual stocks, we recommend two main themes: 1) Stable groundwork - large-scale banks with high dividend yields and low valuation volatility in product logic are more valuable for allocation; 2) Growth - companies with continuous alpha under growth logic have more room for valuation increase.

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