Jinwu Financial News | Bank stocks improved collectively. Standard Chartered Group (02888) rose 3.77%, Bank of Jiangxi (01916) and Bank of East Asia (00023) rose more than 3%, Bohai Bank (09668) rose 2.17%, and Hang Seng Bank (00011), China Merchants Bank (03968), and HSBC Holdings (00005) rose more than 1.5%.
The Dongxing Securities Research Report points out that they are optimistic about the allocation value of the banking sector in the long term, and focus on flexible performance targets in the short term. 1) Under the downward trend in interest rates, we continue to be optimistic about the value of asset allocation with high dividend dividends. Although banks are weak in business, their valuations are low, dividend ratios are high, and they have the characteristics of fixed income. 2) Sector valuation premiums have subsided. In the second half of the year, it is recommended to focus on performance deterministic bank valuation repair opportunities. In recent years, valuations within the listed banking sector have converged a lot, and the PB-ROE curve has gradually flattened. Considering the current differentiation of performance within the banking sector, and from a capital perspective, absolute income assessment funds represented by insurance capital have take-profit claims, it is recommended to focus on some urban agricultural commercial banks with leading certainty in performance.