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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.
In February, the LPR Quote was released: the interest rates for both 5-year and 1-year terms remain unchanged.
The loan market quote rate (LPR) for February has been released: the LPR for more than 5 years is 3.6%, the same as last month at 3.6%. The 1-year LPR is 3.1%, unchanged from last month at 3.1%.
After 28 days of explosive growth, the banking industry's "DeepSeek moment" raises three questions: Will CSI Information Security Index be the biggest obstacle?
① The biggest obstacle to the large-scale application of DeepSeek is still the CSI Information Security Index issue. Currently, Banks are generally "waiting" and observing the attitude of financial regulatory bodies towards DeepSeek. ② From a cost perspective, DeepSeek will indeed be more Bullish for small and medium-sized Banks in the early stages. However, when considering customer numbers, asset scale, and data quality, large Banks undoubtedly have more advantages.
CITIC SEC: The next phase of absolute returns in the Banks sector is still worth期待. Two main lines are recommended.
CITIC SEC's Research Reports state that the performance summaries released for 2024 show that the overall operation of the listed Banks is stable.
