Jingu Financial News | China mainland banking stocks rose across the board, as of the deadline for submission, Harbin Bank (06138) rose by 1.85%, Agricultural Bank of China (01288) rose by 1.42%, Bank of Zhengzhou (06196) rose by 1.37%, China Citic Bank Corporation (00998) rose by 1.24%, Postal Savings Bank of China (01658) rose by 0.92%.
On the news front, the banking industry analyst Lin Yingqi of China International Capital Corporation's research department published the latest comments, stating that the bank's excess returns are mainly due to the combined effects of fundamentals and liquidity: despite the pressure on operations, the banks have achieved stable profits and dividends through the reduction of liability costs, investment income, and contributions to provisions. Under the guidance of "upholding the bottom line of preventing systemic financial risks", policies also further support stable bank interest spreads, asset quality, and profitability. As a result, banks are able to maintain stable profit growth and high dividends, becoming scarce assets in the market. In addition, inflows of funds from index funds and insurance have also driven the rebalancing of bank sector allocations.
