Understanding the Market | Bank Stocks Turned Down in Late Trading, CZBANK Fell Over 4%, Multiple Banks Will Implement Annual Dividends Soon
Bank stocks turned to decline in the afternoon, with CZBANK dropping over 4%. CM BANK announced a dividend of 50.44 billion yuan today, ICBC plans to distribute 1.65 yuan for every 10 shares, and ABC is expected to implement a dividend on July 17. GF Securities pointed out that the interest rate cut on deposits has led to a reevaluation of banks, and dividend yields may decline. Huaxi Securities stated that attention on the banking sector is increasing, and subsequent volatility may intensify
According to Zhitong Finance APP, bank stocks turned to decline in the late trading session. As of the time of publication, China Zheshang Bank (02016) fell by 3.87%, trading at HKD 2.98; China Everbright Bank (06818) dropped by 3.18%, trading at HKD 3.96; China Merchants Bank (03968) decreased by 1.34%, trading at HKD 51.5; and China Construction Bank (00939) fell by 0.94%, trading at HKD 8.4.
In terms of news, China Merchants Bank announced a cash dividend distribution of a total of RMB 50.44 billion today. Industrial and Commercial Bank of China plans to distribute RMB 1.65 per 10 shares, with the record date on July 11, the ex-dividend date on July 14, and the payment date on July 14, totaling a cash dividend distribution of RMB 58.664 billion. Additionally, Agricultural Bank of China is expected to implement a dividend on July 17; CITIC Bank and China Merchants Bank will implement dividends on July 10 and 11, respectively, while Shanghai Pudong Development Bank's ex-dividend date is July 16.
Guangfa Securities previously pointed out that the disintermediation caused by accelerated deposit rate cuts also includes liquidity flowing to the insurance liability side. Coupled with structural adjustments on the insurance asset side, this has accelerated the revaluation of A-share banks, with dividend yields moving from 4% towards a 3% central tendency. It is expected that the dividend yield of bank H-shares will also be driven down subsequently. Huaxi Securities stated that the banking sector has accelerated its rise since May, indicating a significant increase in capital's attention to bank varieties, which means that the volatility of the banking sector may be greater than before
