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CITIC Securities: The economic downturn and pessimistic expectations of asset quality that suppress the performance of the banking sector are expected to gradually improve

The latest research report of CITIC Securities believes that in the near future, the disposal of Evergrande's debt problem is also steadily advancing, and the economic prosperity and pessimistic expectations of asset quality that have previously suppressed the performance of the banking sector are expected to gradually improve, and it is recommended to pay attention to the allocation value of the sector. The selection of individual stocks can follow two clues: 1) high-quality banks: the valuation premium is expected to continue, and the profit leadership brings sustained alpha earnings, such as China Merchants Bank and Ping An Bank; 2) Improved banking: profit elasticity comes from stable growth on the income side and sufficient and effective provision end, and there is room for revaluation of stock prices, including Industrial Bank, Postal Savings Bank, Bank of Nanjing and Bank of Jiangsu. (Securities Times)

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