Is the bull market really coming? Bank stocks soared across the board: more than 5percent up

category:Finance
 Is the bull market really coming? Bank stocks soared across the board: more than 5percent up


Bank shares soared day after day, many investors sigh that the bull market is really coming?

A banking analyst pointed out that the continuous rise of the banking sector is related to the recent State Council meetings proposal to arrange a certain amount of special debt to supplement the capital of small and medium-sized banks, as well as the continuation of the favorable effects of refinancing and rediscount interest rate cuts. In addition, some people in the industry said that the strong stretch of bank stocks continued the good upward trend since July. The reason is that, since the beginning of the year, due to the increasing economic downward pressure and the increase of bad debt risk and other factors, the financial sector has suffered a big decline, especially in June, the bank valuation is at the lowest historical level, and the cost performance ratio is prominent. With the domestic economy gradually getting out of the impact of the epidemic, the profits of Industrial Enterprises above designated size increased by 6% year on year in May. The PMI in June exceeded the expectation, and the economy is expected to rebound significantly in the second half of the year. The obvious rebound of the economy and the resonance of undervalued value make the market capital transfer from the high valuation sector to the undervalued sector. Financial stocks such as banks have become the biggest beneficiaries, opening the way for reasonable valuation repair. Source: Chen Hequn, editor in charge of economic report in the 21st century_ NB12679

A banking analyst pointed out that the continuous rise of the banking sector is related to the recent State Council meetings proposal to arrange a certain amount of special debt to supplement the capital of small and medium-sized banks, as well as the continuation of the favorable effects of refinancing and rediscount interest rate cuts.

In addition, some people in the industry said that the strong stretch of bank stocks continued the good upward trend since July. The reason is that, since the beginning of the year, due to the increasing economic downward pressure and the increase of bad debt risk and other factors, the financial sector has suffered a big decline, especially in June, the bank valuation is at the lowest historical level, and the cost performance ratio is prominent. With the domestic economy gradually getting out of the impact of the epidemic, the profits of Industrial Enterprises above designated size increased by 6% year on year in May. The PMI in June exceeded the expectation, and the economy is expected to rebound significantly in the second half of the year. The obvious rebound of the economy and the resonance of undervalued value make the market capital transfer from the high valuation sector to the undervalued sector. Financial stocks such as banks have become the biggest beneficiaries, opening the way for reasonable valuation repair.