HK Stock Market Move | China Merchants Bank(03968) rose more than 3%, leading the gains in domestic bank stocks. The high dividend yield of banks still has attractive investment value.

In the internal banking sector, stocks are generally rising. As of the time of publication, China Merchants Bank (03968) rose by 3.06% to HK$30.35; Postal Savings Bank Of China (01658) rose by 2.18% to HK$4.22; Bank Of China (03988) rose by 1.76% to HK$3.46; BANKCOMM (03328) rose by 1.7% to HK$5.38. On the news front, on September 13, the central bank released the August 2024 social financing and financial statistics, with the stock of social financing growing by 8.1% year-on-year in August, adding 3.0298 trillion yuan, and new RMB loans amounting to 900 billion yuan. Minsheng Securities pointed out that at the current stage, the growth rate of the total financial index has stabilized, and the central bank has stated that it will continue to support its monetary policy stance, which provides good support for stable economic growth. On the other hand, the government's investment efforts continue to strengthen, which is expected to provide certain support to social financing. Despite recent corrections in the sector due to expectations of interest rate cuts on existing home loans and the disclosure of interim financial results, banks' high dividend yield remains attractive in the process of stabilizing and improving the economy. Orient stated that in Q3, attention should be paid to the possibility of the fiscal pace accelerating, while considering the marginal weakening effect of policies such as targeted easing and manual interest rate adjustments. It is expected that social financing and credit data will stabilize and rebound, maintaining the stable fundamentals of the banking industry and ensuring dividends for the whole year. Taking into account the expectations of a rate cut by the Federal Reserve in September and the pressure on domestic economic operation, the bank predicts that an interest rate cut policy may be introduced in October, and the overall broad-spectrum interest rates are expected to decrease, with bank stocks potentially generating excess returns once again.