Yin He Zheng Quan·2025-03-05 06:28Investment Rating - The report maintains a "Recommended" rating for the banking sector, highlighting its configuration value amidst supportive monetary policies and fiscal measures [5][30]. Core Insights - The banking sector has shown resilience, with the banking index declining only 0.36% compared to a 2.22% drop in the Shanghai and Shenzhen 300 index, indicating better performance relative to the market [5][10]. - The issuance quota for interbank certificates of deposit (CDs) has significantly increased, with a 46.26% rise among major state-owned banks and a 20.3% increase among listed joint-stock banks compared to the previous year, reflecting potential pressures on deposit growth [5][8]. - Financial support for private enterprises is expected to strengthen, with initiatives aimed at increasing credit availability and reducing financing costs, including a commitment from major banks to provide substantial funding to private enterprises over the next three years [9][30]. Summary by Sections Latest Research Insights - The report emphasizes the substantial increase in the 2025 interbank CD issuance quotas, with 264 banks announcing plans, indicating a response to deposit growth pressures, particularly among state-owned banks [8][9]. - A meeting held by the central bank and other departments focused on enhancing financial support for private enterprises, with measures to increase credit and lower financing costs [9][30]. Market Performance - The banking sector outperformed the broader market, with specific banks like CITIC Bank and Qilu Bank showing notable gains of 4.23% and 2.73%, respectively [5][10]. - The banking sector's price-to-book (PB) ratio stands at 0.65, with a dividend yield of 6.53%, indicating attractive valuation compared to the overall market [19][30]. Investment Recommendations - The report suggests that the increase in interbank CD quotas will help address short-term liquidity needs and support credit growth, particularly for private enterprises [30]. - Recommended stocks include Industrial and Commercial Bank of China (601398), China Construction Bank (601939), Postal Savings Bank of China (601658), Jiangsu Bank (600919), and Changshu Bank (601128) [30].