Storing money in the bank is not as good as buying bank stocks? Regional banks have the upper hand.

Since the beginning of this year, domestic deposit rates have continued to decline, with the interest rates on one-year fixed-term deposits at many banks falling below 1%, weakening the attractiveness of traditional savings. At the same time, the "bond-like" properties of bank stocks have become prominent. As of May 23rd, out of 42 A-share listed banks, over 70% have a dividend yield of over 4% in the past 12 months, with some banks having a dividend yield exceeding 8%, far surpassing deposit and government bond returns. This income gap has triggered a "substitution effect", driving strong performance in bank stocks, with an increase of 7.66% since the beginning of the year. Insurance funds and mutual funds have been increasing their holdings in bank stocks, significantly increasing their share ratios. Furthermore, within the banking sector, there is a differentiation in performance, with regional banks showing more prominent results. Industry insiders believe that in the short term, the high dividend strategy will continue to drive up bank stock prices, while in the medium to long term, the level of interest rate spread and asset quality are key factors to consider.