Zheng Quan Ri Bao·2025-07-16 16:41Core Viewpoint - China Life Insurance plans to fully divest its shares in Hangzhou Bank after nearly 16 years of investment, indicating a shift in asset allocation strategy [1][2][3] Group 1: Shareholding Changes - China Life intends to reduce its holdings by up to 50.79 million shares, which represents a complete exit from its investment in Hangzhou Bank [1][3] - Since 2021, China Life has already reduced its stake in Hangzhou Bank three times, totaling approximately 3.042 billion yuan [3] - Other banks, such as Qilu Bank and Changsha Bank, have also announced shareholding reductions by major shareholders, reflecting a broader trend in the banking sector [4] Group 2: Market Reactions and Trends - The recent increase in bank stock prices has prompted some shareholders to realize their investment gains, which is viewed as a normal market behavior [2][4] - Despite the reductions, analysts believe that the overall valuation of banks remains stable, as the motivations behind these actions are often related to financial needs rather than negative outlooks on bank fundamentals [4] Group 3: Investment Sentiment - Insurance capital continues to favor bank stocks, with 10 out of 20 recent equity stakes being in listed banks, indicating a strong belief in their long-term investment value [5] - As of the first quarter, insurance companies held approximately 265.8 billion yuan in bank stocks, the highest among all sectors, suggesting that banks are seen as a "ballast" for long-term investments [5] Group 4: Stock Performance - The A-share banking sector has shown robust performance, with 41 out of 42 bank stocks rising, and some banks experiencing over 50% increases in stock price [6] - The average dividend yield for A-share listed banks is currently 3.68%, with some banks reaching as high as 6.43%, making them attractive in a low-interest-rate environment [6] - Analysts note that despite the recovery in valuations, bank stocks remain relatively undervalued compared to other sectors, supported by improving asset quality and stable dividend yields [6]