On June 3, China Mainland Banking stocks strengthened again, with the Sector Index hitting a historical high. As of the report's release, $CITIC BANK (00998.HK)$ up 5.62%, reported at 7.14 Hong Kong dollars; $MINSHENG BANK (01988.HK)$ up 4.03%, reported at 4.13 Hong Kong dollars; $ICBC (01398.HK)$ up 3.55%, reported at 5.83 Hong Kong dollars; $ABC (01288.HK)$ Increased by 3.21%, reported at 5.14 Hong Kong dollars.
In terms of news, as of the end of May, seven insurance companies have collectively raised stakes 15 times this year, exceeding the total amount raised for the entire year of 2023 and also surpassing the amount raised in the first nine months of 2024.
Among the 12 listed companies that have been targeted for stake purchases by insurance funds this year, there are five banks. $CM BANK (03968.HK)$ 、 $PSBC (01658.HK)$ 、 $ABC (01288.HK)$ The H-shares of various Banks have been targeted for purchase a second time, with the investing Institution being Ping An Insurance. Currently, Ping An Life's shareholding ratio in the H-shares of CM BANK and Postal Savings Bank Of China exceeds 11% in both banks. On May 23, the shareholding ratio of companies under Ping An Insurance in Agricultural Bank Of China H-shares surpassed 14%.
Tianfeng's Research Reports point out that the valuation repair logic driven by dividend value is expected to continue. From a fundamental perspective, the net interest margin of banks has a limited downward range for the whole year, and performance is still in a bottoming and stabilizing stage. However, benefiting from new regulations on public funds and the entry of medium and long-term capital into the market, the bank sector, as a stable fundamental, with stable dividends and low valuations, is expected to continue to enhance its attractiveness to capital.
Editor/joryn