Di Yi Cai Jing·2025-09-04 14:27Core Viewpoint - The A-share market experienced a significant downturn on September 4, with technology stocks declining sharply while bank stocks, particularly Agricultural Bank of China, saw a notable increase, surpassing Industrial and Commercial Bank of China in total market capitalization, marking a new record for Agricultural Bank [2][4][5]. Market Performance - The Shanghai Composite Index fell by 1.25% to 3765.88 points, while the ChiNext Index dropped by 4.25% to 2776.25 points, indicating a broad market decline [2][4]. - Agricultural Bank's stock price rose by 5.17%, closing at 7.52 yuan, with a total market capitalization reaching 2.55 trillion yuan, exceeding that of Industrial and Commercial Bank by approximately 667 billion yuan [4][5]. Year-to-Date Performance - Agricultural Bank led the A-share market with a year-to-date stock price increase of 47%, resulting in a market capitalization growth of over 721.9 billion yuan, equivalent to the market cap of a major company like China Shenhua [5][11]. - Other major banks showed varied performance, with Postal Savings Bank up by 18.03% and Industrial and Commercial Bank up by 13.54% [3][5]. Sector Analysis - The banking sector showed resilience amid a broader market decline, with 24 bank stocks closing in the green and the total market capitalization of the banking sector reaching approximately 14.64 trillion yuan [4][5]. - The performance of Agricultural Bank was particularly strong, with its stock price rising significantly despite a general downturn in the market [4][9]. Investment Dynamics - The recent rally in bank stocks is attributed to increased interest from institutional investors, including insurance funds and public funds, which have been accumulating shares in major banks [9][10]. - The valuation of bank stocks remains attractive, with Agricultural Bank's price-to-book ratio at 0.98, indicating potential for further investment [11][12]. Future Outlook - Analysts expect continued improvement in bank operating metrics in the second half of the year, driven by fiscal tools and a recovering economy, although asset quality will depend on the real economy's performance [12].