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The market has risen and fallen! What happened?
The entire market is looking for reasons!
"Anti-involution" creates a "directional" bullish environment for the Banking Industry in China. JPMorgan: In 2016, supply-side reform nearly doubled bank stocks, but this time it will be more moderate.
JPMorgan stated that during the supply-side reform period from 2016 to 2018, the MSCI Bank Of China Index rose by 97%, and the net interest margin rebounded by 18 basis points without policy interest rate adjustments. The current round of "anti-involution" is also expected to drive a rebound in the bank's net interest margin and enhance profits, particularly benefiting joint-stock banks, with the banking industry's profitability expected to have an upside potential of 8%.
Hong Kong stocks move | BANK OF GANSU (02139) rises over 5%. Institutions state that banks, as "certain Assets," are expected to receive a value reassessment.
BANK OF GANSU (02139) rose over 5%, as of the time of writing, up 5.45%, priced at 0.29 HKD, with a trading volume of 1.858 million HKD.
It's not just China; global Bank stocks are all reaching new highs.
In the context of global low growth and increasing uncertainty, Banks are regarded as "certainty Assets" due to their stable profits and sustainable dividends, leading to a reassessment of their value. Additionally, since 2022, major countries have raised interest rates, combined with the unique business models and shareholder return mechanisms of overseas banks, which allow them to have both high returns and growth potential.
The marketing war of Bank wealth management.
① Currently, more and more Banks and wealth management subsidiaries are increasing their investment in areas such as graphic cooperation, Community Operation, and video account production. ② Activities like financial festivals rely on various marketing methods mainly through launching new products or holding lotteries. ③ Banks are not allowed to livestream to sell financial products, but wealth management subsidiary regulations permit this.
Accelerating withdrawal of offline outlets? In the first half of the year, the number of "disappeared outlets" of commercial Banks reached 2,677, exceeding the total of last year.
In the first half of 2025 (from January 1, 2025 to June 30, 2025), approximately 2,677 commercial banks' offline branches closed. Industry insiders believe that due to the high operating costs of offline branches, coupled with the impact of CNI Xiangmi Lake Fintech Index and the need to save costs, it is inevitable for some banks to appropriately reduce their offline branches.