Home » Increase in Holdings by Huijin Injects Optimism in Major Banks and A-Share Market

Increase in Holdings by Huijin Injects Optimism in Major Banks and A-Share Market

by admin

Title: Huijin Increases Holdings in Major Banks, Boosting Confidence in A-Share Market

Date: [Current Date]

After eight years, Huijin has increased its holdings in the stocks of the four major banks. Agricultural Bank of China, Bank of China, China Construction Bank, and Industrial and Commercial Bank of China recently announced that Huijin, their controlling shareholder, has increased its stake in the companies.

This move by Huijin marks a rare occurrence in the A-share market, with the last disclosed increase in bank shares taking place in 2015 when Huijin simultaneously increased its holdings in the four major banks, spending over 10 billion yuan. Additionally, in 2015, Huijin maintained the stability of the securities market by buying ETFs. Now, after eight years, Huijin has once again increased its holdings in the stocks of the four major banks, leading institutions to believe that it will significantly boost overall confidence in the A-share market.

Statistics from Databao reveal that, based on the latest rolling price-to-earnings ratio, the banking sector in the A-share market has the lowest valuation, standing at 4.77 times. Over the past decade, the sector’s valuation has steadily declined, reaching below 5 times since July 2022. Notably, six listed companies, including Bank of Guiyang, Huaxia Bank, and Industrial Bank, have a rolling price-to-earnings ratio of less than 4 times.

Bank of Guiyang, specifically, shows a rolling price-to-earnings ratio of 3.26 times, making it only higher than *ST Botian and COSCO Shipping Holdings in the entire A-share market. The company has attributed the improvement in the overdue rate during the first half of the year to proactive risk management, timely debt prevention measures, strengthened debt collection efforts, and the recovering real economy.

See also  Public transport needs 1 billion to close the 2021 accounts

In terms of performance, Changshu Bank is the only financial institution that has released a performance forecast for the third quarter of 2023. The bank indicates that it expects operating income to increase by approximately 12.5% year-on-year, with net profit attributable to the parent company projected to grow by around 21% year-on-year. The bank also stated that its non-performing loan ratio remains consistent with the first half of the year.

With Huijin’s increased holdings in the major banks and the banking sector showing relatively low valuations, investors and institutions are optimistically looking forward to a positive impact on the overall confidence and performance of the A-share market.

Source: [Data treasure]

Note: *ST Botian and COSCO Shipping Holdings are companies listed on the A-share market with lower rolling price-to-earnings ratios than Bank of Guiyang.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy