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Recently, in a weak market, bank stocks have bucked the trend and strengthened, with many individual stocks setting new historical highs in succession.

The six major banks hit record highs

Today, the A-share banking sector index rose and then fell, and many bank stocks set new historical highs.

in,ICBCThe stock price once rose by more than 1% in the early trading, setting a new historical high, with a market value of 2.26 trillion yuan, surpassingChina Mobile, becoming the new market capitalization leader of A-shares.

China Construction BankThe stock price once rose by more than 1%, hitting a record high, reaching a maximum of 8.15 yuan, with a total market value of 2.03 trillion yuan.

Agricultural Bank of ChinaThe stock price rose 0.8% during intraday trading, hitting a record high of 4.94 yuan, with a total market value of 1.72 trillion yuan.

Bank of ChinaThe stock price rose by more than 0.6% during the session, hitting a record high of 4.96 yuan, with a total market value of 1.46 trillion yuan.

Bank of CommunicationsThe stock price rose by more than 0.5% during the session, hitting a record high of 7.96 yuan, with a total market value of 590.389 billion yuan.

Postal Savings BankThe stock price rose slightly and hit an intraday record high, reaching a maximum of 5.1 yuan, with a total market value of 503.738 billion yuan.

From an analysis perspective, the stocks that have continued to hit new highs recently are still some bank stocks with larger market capitalizations.

Looking at the long run, the banking sector index has risen 16.68% so far this year.

At the stock level,Bank of NanjingUp more than 50%, Bank of Communications up more than 48%,Chengdu BankThe increase was more than 46%, and the Agricultural Bank of China increased by more than 43%.Bank of Hangzhou, Pudong Development Bank and Industrial and Commercial Bank of China rose by more than 42%, Chongqing Rural Commercial Bank and Shanghai Bank rose by more than 38%, CITIC Bank, Bank of Beijing and CCB rose by more than 33%, Bank of China rose by more than 31%, Shanghai Rural Commercial Bank and China Merchants Bank rose by more than 29%, Bank of Jiangsu and Qilu Bank rose by more than 28%, Postal Savings Bank of China, Changshu Bank and China Hua Xia Bank rose by more than 23%.

Is funding the main reason?

As for the reasons for the strong performance of bank stocks, on the one hand, high dividend strategies continue to be sought after by the market, and bank stocks are considered one of the representatives of high dividends.

On the other hand, the market continued to weaken, trading volume was sluggish, and risk aversion sentiment was strong. Compared with other sectors, banks had a relatively high cost-effectiveness.

In addition, some securities analysts are optimistic about the improvement in banks' fundamentals and the net interest margin is expected to stabilize.

In this regard, Industrial Securities analyzed that behind the rise of banks is"Funds determine style."

On the one hand, in this year's environment of pursuing high winning rate and certainty, the market is chasing the low-volatility direction of dividends represented by banks, especially the five major banks.

More importantly, there are changes in incremental funds. This year, the dominant incremental funds are mainly from two sources: ETFs and insurance. Both of these funds have a high proportion of allocation to banks, and therefore have become an important driver of bank growth.

Minsheng Securities believes that the net interest margin of banks will stabilize in the second quarter of 2024. The changes in the distribution mechanism during the process of de-financialization will give systemically important financial institutions more advantages over other financial institutions.Relatively advantageous assets under declining capital returns, we recommend banks that benefit from the gradual stabilization of interest rate spreads.

However, it should be noted that large bank stocks have already risen significantly at present, and investors need to grasp the trading opportunities and participate cautiously.