AGRICULTURAL BANK OF CHINA(SH:601288) 第一财经·2025-08-06 06:05Core Viewpoint - The recent rebound in A-share bank stocks is attributed to the attractive and stable dividends amidst an "asset shortage" environment, with many stocks becoming more cost-effective after a period of correction [3][10]. Group 1: Market Performance - On August 5, the A-share market saw a rise, with the Shanghai Composite Index increasing by 0.96%, surpassing 3600 points, and the China Securities Bank Index rising by 1.6% to 8087.4 points [5]. - Agricultural Bank of China (ABC) reached a new high, closing at 6.54 yuan per share, while several other banks also saw significant gains, with Shanghai Pudong Development Bank leading with a 4.72% increase [5][6]. - From July 11 to the end of July, the China Securities Bank Index fell by 7.27%, while ABC was the only bank stock to rise during this period, increasing by 1.95% [6]. Group 2: Financial Performance - Preliminary reports indicate that three out of five regional banks that disclosed their half-year results achieved double-digit growth in net profit attributable to shareholders [3][12]. - The median dividend yield for A-share bank stocks remains around 4%, with nearly 90% of stocks yielding over 3% [11]. Group 3: Regulatory Changes and Impact - Starting August 8, new regulations will impose a value-added tax on interest income from newly issued government bonds, local bonds, and financial bonds, which may enhance the relative attractiveness of bank stocks compared to bonds [10][11]. - The new tax regulations are expected to create an incremental tax burden for institutional investors, with projected additional tax revenues of approximately 321 billion yuan, 648 billion yuan, and 988 billion yuan for the years 2025 to 2027, respectively [10]. Group 4: Institutional Investment Trends - Insurance funds have shown a strong interest in increasing their holdings in bank stocks, with over 20 instances of shareholding increases this year, surpassing the total for the previous year [11][12]. - The implementation of new accounting standards for the insurance industry has led to a significant increase in bank stock purchases, as these stocks are often priced below their net asset value [13].