Hong Kong Stock Concept Tracking | Public Fund Reform Plan Released Institutions Focus on New Logic of Bank Allocation under Fund Reform (with Concept Stocks)
Recently, the financial sector has performed strongly, with the banking index reaching a historical high and market sentiment soaring. The People's Bank of China has lowered the reserve requirement ratio and interest rates, and the public fund reform plan has been released, which is expected to drive more funds into the financial sector. Huatai Securities pointed out that the public fund reform will drive the valuation of the banking sector, and future fund allocations may align with performance benchmarks. Investors are focusing on the allocation value of underweight joint-stock banks and stable large banks. Related Hong Kong stock companies include Agricultural Bank of China, China Merchants Bank, etc
Recently, the financial sector has performed remarkably well, becoming the focus of market attention.
According to Wind Information, as of the close on May 15, the Wind Bank Industry Index stood at 7072.61 points, reaching a historical high.
On the previous day, sectors such as banking, insurance, and brokerage all made strong gains, driving the Shanghai Composite Index above 3400 points and boosting market sentiment. Against this backdrop, the subsequent allocation value of the financial sector has become a point of interest for investors.
Industry insiders believe that positive factors such as the People's Bank of China's reserve requirement ratio and interest rate cuts, the release of public fund reform plans, and the continuous increase in insurance capital's equity investment are expected to bring allocation opportunities to the financial sector, including the banking sector, and drive more funds into the market.
Huatai Securities believes that the implementation of public fund reforms is likely to drive the valuation of the banking sector.
According to Zhitong Finance APP, the China Securities Regulatory Commission recently released the "Action Plan for Promoting the High-Quality Development of Public Funds," significantly strengthening the binding force of performance benchmarks, and it is expected that fund allocations will align more closely with performance benchmarks in the future. In the first quarter of 2025, actively managed equity funds are significantly under-allocated to banks, deviating from the CSI 300 by nearly 10 percentage points, and there may be substantial allocation space driven by reforms. The recent package of policies has been implemented, driving economic recovery. Huatai Securities' latest research report believes that the continuous expansion of passive funds and accelerated entry of insurance capital into the market will likely lead to sustained inflows of incremental funds, further supporting the sector's performance. Stocks to watch: 1) Shares of banks that are under-allocated in public funds in the first quarter of 2025; 2) Stable large banks still have allocation value; 3) High-quality individual stocks.
Hong Kong-listed companies related to domestic banks:
Agricultural Bank of China (01288), China Merchants Bank (03968), CITIC Bank (00998), Bank of China (03988), Postal Savings Bank of China (01658), China Construction Bank (00393), CITIC Bank (00998), Qingdao Bank (03866), Zhejiang Commercial Bank (02016), etc
