A-share market listed banks continue to provide high levels of support to weak links between key sectors and the Chinese economy, experts say.
Such a bank credit structure shows that banks are strengthening industries, expanding financial inclusion, promoting green growth and promoting the steady development of agriculture, industry observers said. rice field.
The ‘Big 6’, one of China’s six largest state-owned commercial banks in terms of assets, increased by c. Did. , according to its recently released third-quarter financial results.
An advance payment refers to money provided by a lender to a client to meet a short-term request.
The Industrial and Commercial Bank of China, China’s largest state-owned commercial bank, reported an increase of more than 640 billion yuan in outstanding infrastructure loans from the beginning of the year to the third quarter.
During the same period, the balance of loans to the manufacturing sector increased by more than 810 billion yuan, the balance of green loans increased by about 950 billion yuan, and the balance of comprehensive loans increased by more than 410 billion yuan.
According to Guosheng Securities analyst Ma Tingting, banks are expected to maintain high loan growth over the next one to two quarters.
With the continued implementation of policies to stabilize economic growth, China’s banking sector will continue to increase lending to infrastructure projects and the manufacturing sector in the fourth quarter through the implementation of previously launched policy-based financial instruments said Ma.
BOC Research Institute researcher Liang Si said:
According to the People’s Bank of China, the balance of medium- and long-term loans to enterprises and public institutions at the end of the third quarter was 83.86 trillion yuan, up 12.7% year-on-year, up 0.7 percentage points from the first half. China, central bank.
“In September, new medium- and long-term corporate loans accounted for 54.6% of new yuan loans, the highest percentage since the beginning of the year. It will serve effectively,” Liang said.
Another researcher at the BOC Research Institute, Ye Yindan, said, “China will continue to implement possible measures such as lowering reserve requirements and opening up market operations to stabilize the size of bank loan issuance and ensure gradual safety.” By taking steps, we will maintain market liquidity at a reasonably adequate level.” Increase funding for the real economy. ”
Apart from encouraging financial institutions to continue to strengthen their support for green and high-tech industries, China will also strengthen policies to stabilize market-driven operations. Measures such as increasing the allocation of blanket loans for micro and small enterprises are likely to be taken to ease the pressure on small businesses’ capital flows, Ye said.
Liu Zhiping, an analyst at Huaxi Securities, said credit allocation in the third quarter was heavily influenced by policy, with lending to key sectors of the economy such as manufacturing, micro and small enterprises growing significantly year-on-year. said. , and green industry.
China’s listed banks posted continued growth in the first three quarters amid an overall improvement in asset quality despite the pressure they faced on their operating margins. During this period, 42 listed banks in the A-share market recorded an 8% year-on-year increase in total net profit, he said.
The Big 6 reported that total net profit attributable to bank shareholders exceeded 1 trillion yuan in the first three quarters.
Excluding China Post Bank, the net profit growth of the other five major banks ranged from 5.47% to 6.52%, with PSBC recording the highest net profit growth of 14.48% among the Big 6.
Given that listed banks in the A-share market have fully considered loan impairment losses, full-year profit growth is likely to be only about 8%, said CITIC Securities analyst Xiao Feifei. pointed out that the
With the economy still relatively weak, asset quality remains key to bank earnings growth. High-quality banks will record steady profit growth thanks to accelerated disposal of distressed assets, improved customer structure and strict risk management, said Mr. Ma of Guosheng Securities.