Jinwu Financial News | Fangzheng Securities released a research report. On February 9, the central bank released financial credit data for January. The scale of social financing increased by 6.5 trillion yuan in January, an increase of 506.1 billion yuan over the previous year; RMB 4.84 trillion was added in January, a year-on-year decrease of 91.3 billion yuan; M2 was +8.70% year-on-year, and M1 was +5.90% year-on-year. According to the bank, both social finance and credit have exceeded market expectations, and demand for credit has increased; consumer spending will pick up and demand for corporate loans has increased; the M1 growth rate has increased, and the scissor gap has been drastically reduced. It is expected that capital idling will decrease and financial support for entities will increase.
The bank continues to be optimistic about the bank's good start. Bank stocks are still at a historically low level in industry valuations after a period of adjustment. Recently, the State Assets Administration Commission will include market value management results in the assessment of central enterprise leaders. It is expected that under the “China Special Valuation” theme, major bank valuations are expected to recover upward. The “high dividend undervaluation” strategy will bring more definite benefits. It is recommended to focus on Agricultural Bank (01288), Postbank (01658), and China CITIC Bank (00998). On the other hand, banks with good fundamentals, a large decline in the previous period, and flexible stock prices are expected to rebound first. It is recommended to focus on China Merchants Bank (03968), as well as urban agricultural commercial banks with resilient regional economies and excellent self-management capabilities: Bank of Ningbo, Bank of Jiangsu, Bank of Changshu, and Bank of Chengdu.