Jinwu Financial News | Bank stocks rose 3.6%, ICBC (01398) rose 2.91%, China Merchants Bank (03968) rose 2.83%, Bank of Communications (03328) rose 2.5%, Bank of Chongqing (01963) rose 2.15%, and Postbank (01658) rose 2.05%.
According to China Galaxy Securities Research, social finance growth falls short of expectations mainly due to the slow pace of base and government bond issuance. Subsequent issuance of trillions of ultra-long-term treasury bonds, there are opportunities for improvement. Credit investment continues to face a pattern where the demand side is weak. Furthermore, regulatory guidance weakens the growth rate of credit, places more emphasis on the quality and efficiency of financial support, and reduces capital idling. In the short term, bank asset side expansion will be affected. In the medium to long term, it will promote the optimization of credit structures and transformation of business models, and guide the industry to better adapt to the needs of high-quality economic development. Combining fundamentals, dividend rates, and valuation factors, we continue to be optimistic about the allocation value of the banking sector.