Shi Yuzhu'S National Life Increased And People'S Livelihood War Escalated

The battle of valuations has been ignited by the downturn in banks' share prices.

In August 25th, Shi Yuzhu, the head of the Shanghai Special Administrative Region, and China Life Insurance, launched a dark battle around 600016.SH, triggering a collective outbreak of listed banks.

Shi Yuzhu and national life scramble to raise people's livelihood

Finance on that day

In August 24th, Shi Yuzhu wrote in a micro-blog that had been deleted: "please don't take the China Life Insurance, and do not want to hold the Minsheng Bank.

China's only private important bank (more than 2 trillion of total assets) should not retrogress into a state-owned bank.

Give a small sky to the private sector.

The Minsheng Bank, which has lost its privatization mechanism, will lose its core competitiveness and bid farewell to its rapid growth.

Prior to that, Liu Jiade, vice president of China Life Insurance, said at the 2011 China daily press conference that China life is still optimistic about bank shares and intends to increase its support to Minsheng Bank.

In fact, the expression in China Life

Between March and July this year, Shi Yuzhu spent more than 38 billion yuan, and the 42 increase in Minsheng Bank.

According to the information disclosed by the HKEx, as of July 15th, the Shanghai A shares of Minsheng, which owns the Minsheng Bank, has increased from 147 million shares at the beginning of the year to 800 million shares, and the shareholding ratio has increased from 0.65% to 3.54%, and its holdings are mostly between 5.7~5.9 yuan.

At present, the overall price earnings ratio and market value of listed banks have reached a record low.

Listed banks in 2011/2012 PE were 7.02 times /5.51 times, and PB in 2011 was 1.28 times.

Among them, state-owned big banks, joint-stock banks and city commercial banks in 2011/2012 PE were 6.4/5.2 times, 7.2/5.5 times and 7.5/5.9 times respectively, and PB in 2011 was 1.29 times, 1.26 times and 1.32 times respectively.

Fund withdrawal risks capital industry capital advance

Unlike the capital alligators who favor banking stocks, our reporter has noticed that in the eyes of some institutional investors represented by funds, the listed banks have become "chicken ribs".

According to statistical data, as at the end of the two quarter of 2011, the market value of the financial and insurance industry (SFC industry classification) held by the fund company amounted to 228 billion 512 million yuan, and the market value of the financial and insurance industry accounted for 21.38% of the market value of A shares, down 0.44 percentage points from the end of the first quarter of 2011. The market value of the financial and insurance industry held by the fund accounted for 14.49% of the total market capitalization of the fund, up 0.56 percentage points from the end of the first quarter.

From the two quarter of 2011, the fund's low allocation ratio shows that the financial and insurance industry has become the second highest industry after the extractive industry, with a low allocation ratio of 6.89%.

At the end of the two quarter of 2011, only 4 of the 16 banks held heavy holdings and the remaining 12 were reduced.

Among them, the largest proportion of the fund holding shares in the circulation shares was the Everbright Bank and Huaxia Bank, which fell by 5.32% and 3.81% respectively.

The typical phenomenon is that star fund manager Wang Yawei (micro-blog) runs counter to Shi Yuzhu.

Relevant information shows that Wang Yawei began to lighten the bank shares in the first quarter of 2011.

There are only ten banks in China's big market and China strategy.

In the 2011 China Daily, there were no signs of bank shares in the ten largest stocks in the Chinese market and the Huaxia strategy.

And insurance funds are more favorable to bank stocks.

The China Daily reported in August 24th revealed that among its top ten financial assets to be sold, bank shares of Minsheng Bank (A+H), Construction Bank (A+H), China Merchants Bank, Agricultural Bank and industrial and commercial bank account for the largest share.

In the same camp with the national life station,

China Construction Bank reported that China Ping An has increased its holdings.

At the end of the first quarter, China Ping An Life Insurance Limited by Share Ltd, the traditional general insurance product, held 1 billion 325 million shares of the Construction Bank, accounting for 0.53% of the total share capital. At the end of the two quarter, the total share holding ratio of China Ping An Life Insurance Limited by Share Ltd - traditional and general insurance products and the new high interest rate guaranteed products was 0.65%, higher than that of the first quarter.

Industrial and Commercial Bank of China Daily also shows that China Ping An Life Insurance Limited by Share Ltd - traditional - General insurance products increased by 730 million shares.

Bank of China Daily reported that Peoples Insurance Company of China - traditional - General insurance products -008C-CT001 Shanghai increased by 145 million shares.

In addition to insurance funds, some industrial capital has also increased holdings to banks.

For example, YOUNGOR has increased 41 million 350 thousand and 900 shares of Shanghai Pudong Development Bank.

The most undervalued debate in history

For the current valuation of bank shares, Liu Jiade said in a 2011 performance press conference that the valuation level of bank stocks has become relatively reasonable, and the value of investment has begun to appear.

In July 14th of this year, after completing another increase in Bank of China Minsheng Bank and sitting on the sixth largest shareholder, Shi Yuzhu once said on Sina micro-blog: "we increase our people's livelihood and not speculative trading, which is a long-term strategic investment.

We are concerned about the PE and PB of the people's livelihood after 35 years. "

But not everyone thinks so.

Yao Yinan, an analyst at the horizon, said the bank's undervalued value came from its relatively low level of capital, which is equivalent to the pfer of profits from banks to the real economy.

In the short term, the lower real loan interest rate is difficult to change, and the undervaluation of bank shares will continue.

Warren securities strategist Hu Yu (micro-blog) believes that the low price earnings ratio of the banking industry appears to be safe, but there is a huge "trap".

Even if the bank assets are very profitable at present, as long as the asset bubble goes down 20%-30%, the balance sheet of banks may be provisioning at the moment with huge asset impairment, and will net assets into negative value.

As of August 25th, 16 listed banks, including Everbright Bank, Huaxia Bank, Shanghai Pudong Development Bank, Minsheng Bank, Shenzhen Development Bank, Bank of communications, construction bank, Xingye Bank, Nanjing bank, Bank of China, ICBC and Agricultural Bank 12 listed banks have announced the 2011 semi annual report.

This year's interim report shows that during the reporting period, the net profits of 12 listed banks belonging to the parent company owners were 9 billion 210 million yuan, 4 billion 267 million yuan, 12 billion 880 million yuan, 13 billion 918 million yuan, 4 billion 732 million yuan, 26 billion 396 million yuan, 92 billion 825 million yuan, 12 billion 232 million yuan, 1 billion 589 million yuan, 665.131094.81 and 66 billion 679 million yuan respectively.