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Dividend Assets have become attractive again! The Hang Seng Index has dropped over 1400 points in the last five days, while high-yield stocks such as Coal Banks "refuse to correct."
① The Hang Seng Index has fallen more than 1,400 points in the past five days. Why do dividend-paying Assets remain resilient? ② High-yield stocks such as Coal and Banks "refuse to retreat". What bullish factors may continue to drive the market?
CITIC SEC: Market style stabilizes, Banks stocks are expected to continue a steady upward trend.
Overall, the policies since the fourth quarter have a direct effect on stabilizing financial risks. During the Two Sessions, the likelihood of those policies significantly exceeding expectations is low, but the 'uncertain' policies are moving towards 'certainty'. Therefore, bank stocks are expected to continue a steady upward trend.
China's Central Bank Conducts 300 Billion Yuan Medium-term Lending Facility Operation
The central bank carried out a one-year MLF operation of 300 billion yuan with interest rates remaining unchanged.
The People's Bank conducted a 300 billion yuan medium-term lending facility (MLF) operation, with a term of 1 year and a winning interest rate of 2.00%.
Will the tight funding conditions continue? This week, over one trillion interbank certificates of deposit will mature, and the pressure on the Banks' liability side will still require time to alleviate.
① If the funding situation does not loosen, the interbank certificate of deposit interest rates will continue to rise. ② The current relief from pressure on the asset side may take time, and the alleviation of banks' liability pressure may require the liquidity environment to loosen first. ③ Non-bank Institutions and rural commercial banks are the Block Orders for Shareholding, while Funds and Brokerages are the main ones reducing their holdings.
CITIC SEC: It is expected that the performance of Banks and other high certainty Sectors will likely take over, with optimistic absolute return potential.
In terms of individual stock combinations, two main lines are recommended: 1) Stable returns from dividend contributions, select individual stocks with stable performance growth, stable dividend rates, stable asset quality, and low valuation fluctuations; 2) Companies with excellent business models, where valuation premiums are expected to return to normal Range: Select individual stocks with high ROE and strong certainty, where current valuation premiums are still at low levels.
Jiangxi Bank (HKG:1916) Stock Falls 8.8% in Past Week as Five-year Earnings and Shareholder Returns Continue Downward Trend
