AGRICULTURAL BANK OF CHINA(SH:601288) Shen Zhen Shang Bao·2025-08-12 17:14Core Viewpoint - The banking sector in China has shown strong performance in 2023, with several banks, particularly Agricultural Bank, reaching historical highs in stock prices and market capitalization [2][3][4]. Group 1: Stock Performance - Agricultural Bank's stock rose by 1.63% on August 12, 2023, reaching a new historical high, with a year-to-date increase of 34.04% [2]. - As of August 12, 2023, Agricultural Bank's A-share market capitalization reached 2.19 trillion yuan, surpassing Industrial Bank to become the largest in A-share market capitalization [2]. - A total of 42 A-share listed banks have experienced stock price increases this year, with 31 banks rising over 10% and 14 banks over 20% [2]. Group 2: Market Dynamics - The rise in bank stock prices is attributed to a market reassessment of their "low valuation + high dividend" value, alongside expectations of increased profitability and asset improvement [3]. - The banking sector benefits from a favorable environment of loose monetary policy and steady economic recovery, with a dividend yield of 3.90% and a low price-to-book ratio of 0.62, making it attractive for long-term institutional investments [3]. - The demand for credit is expected to expand, leading to a recovery in net interest margins and a decrease in non-performing loan ratios, further enhancing the positive outlook for banks [4]. Group 3: Institutional Investment - The increase in bank stock prices is driven by stable bank earnings, continuous accumulation of bank stocks by large institutional investors, and ongoing allocations by public funds [4]. - Recent performance reports from several banks have shown strong results, contributing to the positive sentiment in the banking sector [4].