Lates News

CITIC Securities stated that recently, on one hand, insurance institutions continue to actively make strategic investments in banks, while on the other hand, the relative returns of the banking sector have weakened. Investors are closely monitoring the future trend of bank stocks. From a medium-term perspective, the banking sector is still undergoing a revaluation of net assets process, combined with the tiered logic of the stock market or long-term deduction, the value of bank stocks for institutional investors is expected to continue to rise. Long-term allocation funds are still underweight, and it is expected that absolute value will continue to be deduced in the future. CITIC Securities believes that it is a high-probability event for bank valuations to recover to above 1 time net assets. If the characteristics of a bull market are strengthened, the subsequent sectoral rotation effect will also catalyze the continued rise in bank stock prices. Therefore, it is recommended for investors to maintain a proactive allocation strategy.