Core Viewpoint - Recent strong performance of bank stocks is primarily driven by new public fund management regulations that encourage increased allocation to bank stocks, which are inherently attractive due to low valuations and high dividend yields [1][2][4]. Group 1: Public Fund Management Regulations - The China Securities Regulatory Commission (CSRC) introduced new public fund management measures on May 7, 2025, emphasizing long-term performance in fund manager assessments, with at least 50% weight on investment returns for executives and 80% for fund managers [4]. - The new performance evaluation method ties fund managers' compensation closely to their performance relative to benchmarks, such as the CSI 300 Index, which has a significant weight in bank stocks [4]. - Currently, public funds have a low allocation to bank stocks, with less than 4% in 2024, while bank stocks represent over 13% of the CSI 300 Index, indicating a need for increased investment in bank stocks to align with benchmarks [4]. Group 2: Valuation and Dividend Yield - Bank stocks are considered severely undervalued, often trading below book value, with price-to-earnings ratios around six to seven times, while many offer dividend yields exceeding 4%, making them attractive compared to the current one-year deposit rate below 2% [6][7]. - A hypothetical scenario suggests that to reduce a 4% dividend yield to 2%, bank stock prices would need to double, highlighting their stability and appeal in a low-interest-rate environment [7]. Group 3: Market Trends and Supportive Factors - Bank stocks have experienced a bull market over the past two years, with this trend continuing [8]. - In times of market intervention, large banks are prioritized for support due to their role in stabilizing indices, as seen during the market rescue around the 2024 Spring Festival [10]. - Ongoing initiatives, such as the orderly progress of "debt reduction" and government support for state-owned banks to bolster core capital, are favorable for the banking sector [10].
银行股近来走强的驱动力,两年来走牛的关键|资本市场
清华金融评论·2025-05-15 10:21