Di Yi Cai Jing·2025-08-07 06:13Core Viewpoint - Agricultural Bank of China (ABC) has become the largest market capitalization bank in A-shares, surpassing Industrial and Commercial Bank of China (ICBC) for the first time, marking a significant shift in the banking sector's market dynamics [1][3][8]. Market Performance - As of August 6, A-shares recorded a three-day consecutive rise, with over 3,300 stocks increasing in value. ABC's A-share market capitalization reached 2.11 trillion yuan, while ICBC's was 2.09 trillion yuan [1][2]. - The banking sector's total market capitalization in A-shares has surpassed 10 trillion yuan for the first time in the first half of the year [3]. Stock Performance - ABC's A-share price increased by 1.51% on August 7, maintaining its lead over ICBC [2]. - Year-to-date, ABC's A-share price has risen by approximately 29.54%, ranking third among 42 listed banks, while ICBC's price increased by 16.85% [5]. Historical Context - Since 2020, the market capitalization champion in A-shares has alternated primarily between ICBC and Kweichow Moutai until ABC's recent ascension [3]. - The total market capitalization of state-owned banks has increased by about 1.2 trillion yuan since the beginning of the year, with ABC contributing 408.6 billion yuan to this growth [6]. Capital Structure - ABC has the highest proportion of A-shares in its total share capital among state-owned banks, at approximately 91%, while ICBC has about 76% [8][10]. - The total market capitalization of state-owned banks reached approximately 9.8 trillion yuan as of August 6, with ABC and China Construction Bank showing the largest increases [11]. Investment Appeal - The low valuation and high dividend characteristics of bank stocks have made them attractive to risk-averse investors, especially in a low-interest-rate environment [4]. - ABC's strong performance is attributed to its stable earnings and dividend distribution, which have garnered interest from long-term investors [5].