Domestic bank stocks generally rose in early trading. As of press release, China Merchants Bank (03968) rose 3.62% to HK$32.9; China Everbright Bank (06818) rose 2.21% to HK$2.31; Bank of Communications (03328) rose 2.5% to HK$5.33; and CCB (00939) rose 2.09 to HK$4.88.
The Zhitong Finance App learned that domestic bank stocks generally rose in early trading. As of press release, China Merchants Bank (03968) rose 3.62% to HK$32.9; China Everbright Bank (06818) rose 2.21% to HK$2.31; Bank of Communications (03328) rose 2.5% to HK$5.33; and CCB (00939) rose 2.09 to HK$4.88.
Wanlian Securities released a research report stating that from a long-term perspective, the banking industry's overall profit growth may have entered the bottom range, and profit stability will gradually be reflected. Also, from the perspective of dividends, an increase in the dividend rate is conducive to an increase in bank stock valuations. However, due to cost-limited endogenous supplementation of the bank's own business model, it meets regulatory requirements for sufficient capital and promotes future business and scale expansion. Consider the current dividend rate and valuation level of bank stocks in a comprehensive manner. Short-term sector defensive properties are still quite obvious. The subsequent gradual recovery of the economy and improvement in credit risk may bring about a new round of market catalysis.
The bank pointed out that since the end of 2023, in the process of continuous adjustment of the macro environment and corporate profit forecasts, high dividend strategies have received continuous attention from the market. Among them, the decline in long-term interest rates is an important factor driving the price performance of high-dividend assets. Higher dividend rates and extremely low valuations of bank stocks have become the preferred capital, compounded by rising demand for market defense, boosting the market performance of the entire banking sector. Looking back, in high dividend strategies, support factors on the denominator side may have responded a lot, and stability on the molecular side has become the key logic for high-dividend stock selection.