The Zhitong Finance App learned that Bank of China stocks were higher across the board in early trading. As of press release, CCB (00939) rose 4.14% to HK$5.79; China Merchants Bank (03968) rose 3.64% to HK$38.45; ICBC (01398) rose 3.13% to HK$4.61; and Postbank (01658) rose 2.96% to HK$4.52.
China Galaxy Securities released a research report saying that credit has maintained reasonable growth, the pace of investment is more balanced, and structural optimization will become the main feature. Monetary policy will pay more attention to quality and efficiency, and continuously enrich the monetary policy toolbox. At the same time, supervision has strengthened the control of capital idling, affecting short-term bank expansion, but it will open up space for optimizing business structures and transforming business models. At this stage, bank valuations are at a moderately low level since 2020, and dividend ratios have been rising steadily. We continue to be optimistic about the banking sector's allocation value.
CICC believes that if the Hong Kong Stock Connect dividend tax relief is implemented, it is expected to further boost the enthusiasm of mainland investors to invest in Hong Kong stocks, especially in high-dividend-related sectors, boost sentiment in the short term, and help improve the liquidity of the Hong Kong stock market in the long term. Lyon, on the other hand, said that if the proposal is implemented, it is believed that the dividend yield gap between A shares and H shares will narrow. H-share bank shares will be the main beneficiaries because their dividend rates are very attractive, and state-owned banks with the highest dividend rates will benefit the most.