In terms of Hong Kong stocks, Everbright Bank rose nearly 4%, China CITIC Bank and Agricultural Bank of China rose more than 2%, and Bank of communications, postal savings bank and industrial and Commercial Bank of China rose more than 1%. After the National Day holiday, the plate started a round of upward trend, with a cumulative increase of more than 14% in 12 trading days.
CICC reported on October 20 that the core logic of this round of bank stocks rise is performance reversal rather than valuation rebound. The high point of credit cost, the high net non-performing rate and the bottom of performance of listed banks were confirmed in the second and third quarters. Since then, the growth rate of bank profits is expected to increase significantly, showing a V-shaped reversal.
According to the prediction of CICC, the A-share market is most optimistic about Huaxia Bank, Bank of communications and Minsheng Bank, with corresponding upward space of 129.2%, 123.9% and 100.7% respectively. China CITIC Bank, Bank of communications and Minsheng Bank are the best in the H-share market, with corresponding upward space of 260.5%, 202.7% and 189.2% respectively.
Source of this article: Yang Bin, editor in charge of CFA_ NF4368