Di Yi Cai Jing·2025-09-04 11:57Core Viewpoint - Agricultural Bank of China has surpassed Industrial and Commercial Bank of China in total market capitalization, becoming the new "universe bank" in the A-share market, marking a significant shift in the banking sector dynamics [1][3][4]. Market Performance - On September 4, the A-share market saw a decline, with the Shanghai Composite Index dropping by 1.25% to 3765.88 points, while Agricultural Bank's stock rose by 5.17%, reaching a total market value of 2.55 trillion yuan, exceeding ICBC's 2.49 trillion yuan by approximately 667 billion yuan [1][3]. - Year-to-date, Agricultural Bank's stock price has increased by 47%, leading among listed banks, with a market value increase of over 721.9 billion yuan [4][8]. Comparative Analysis - As of the latest data, Agricultural Bank's A-share price-to-book ratio (PB) stands at 0.98, making it one of the more attractively valued banks in the market, while the median dividend yield for A-share listed banks remains above 4% [8][9]. - Other major banks have shown varied performance, with Postal Savings Bank up 18.03% and ICBC up 13.54% year-to-date, while China Construction Bank and Bank of China have seen lower increases of 9.58% and 6.55%, respectively [2][4]. Investor Sentiment - The recent rally in bank stocks is attributed to increased interest from institutional investors, including insurance funds, which have been actively purchasing shares in major banks [7][9]. - Despite discussions about a potential end to the bank stock rally due to market style shifts, analysts believe that the underlying fundamentals and improved earnings outlook will support continued interest in bank stocks [9].