[Epoch Times November 12, 2021]Among China’s 41 A-share listed banks, 36 banks’ stock prices have been reported to have fallen below the net asset value, and the percentage of net-breaking (shares falling below the net asset value) is close to 90%, as high as 87.8% .
“Investment Express” reported that after combing through the data of Oriental Wealth Choice, it was found that based on the closing price of November 10, the dynamic price-to-book ratio of listed banking companies had dropped to between 0.35 times and 1.9 times. Among them, 36 listed banks have recently broken net, and another listed bank (Ping An Bank) has a price-to-book ratio of only 1.06 times, and faces the risk of breaking net at any time.
The report said that currently only Bank of Ningbo, China Merchants Bank, Ruifeng Bank, Bank of Hangzhou, and Ping An Bank have not broken the net. The top five listed banks with the bottom-to-bottom market-to-net ratio are Minsheng Bank, Huaxia Bank, Chongqing Agricultural Commercial Bank, Bank of Beijing, and Bank of Communications, with only 0.35, 0.37, 0.43, 0.44, and 0.44 respectively.
From the perspective of industry insiders, the reason why the market generally has low enthusiasm for bank stocks is mainly due to the risks of the credit environment. CITIC Securities chief IFCC analyst clearly stated that the performance of the banking sector this year is closely related to the credit environment.
First, the growth rate of social financing fell from the high point of 13.3% in February to a low point of 10% in September. The growth rate of total bank assets has declined. In the third quarter, the year-on-year growth rate of total assets of listed banks fell to 8.1%; Second, under the environment of credit contraction, credit risks in real estate-related fields continue to be exposed, and the stock prices of the banking sector are suppressed.
PricewaterhouseCoopers Hong Kong’s financial industry audit department partner Zheng Shanbin said that in the second half of the year, China’s listed banks will continue to face risk exposures in industries such as real estate and mining. The authorities require financial institutions to give benefits to the real economy, and the deferred debt and interest payment policy may end within the year. The profitability of the banking industry may be affected, and the non-performing asset ratio will have upward pressure.
PricewaterhouseCoopers Hong Kong’s financial industry audit department partner Huang Kaiting said that due to the repeated effects of the epidemic, economic recovery and financial markets are still facing uncertainties, and China’s banking industry is also facing a series of risk challenges, including extreme weather and natural disasters for different industries. In the process of industrial upgrading and transformation, traditional manufacturing companies may encounter operational difficulties, real estate financial regulation continues, and the financial industry has strengthened supervision trends.
Editor in charge: Li Bing#
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