How global bank stocks continue to hit new highs

Recently, A-share bank stocks have been rising strongly and hitting new highs, attracting the attention of investors. On July 10th, the stock prices of Industrial and Commercial Bank, Agricultural Bank, Bank of China, and Construction Bank all hit historical highs, helping the Shanghai Composite Index return to 3500 points. The strong rise of bank stocks is not only prominent in the A-share market, but also globally. The common change in the global macro environment is an important driver behind this phenomenon. Zhang Qiyao, the chief strategy analyst at CICC, believes that as the global economy enters a period of low growth, policy and geopolitical uncertainties intensify, banks are being reassessed as "certainty assets" with stable profits and sustainable dividends. In addition, since 2022, the United States, Europe, and Japan have all entered a tightening cycle, combined with unique business models and shareholder return forms, overseas banks have both high shareholder returns and growth potential.