Driven by multiple favorable policies, bank stocks have regained their “bullish path.” On October 14, the A-share banking sector once again led all major sectors with a flourishing trend across the board. All 42 bank stocks reported higher and closed higher, and many individual Chengnong Commercial Bank stocks rose more than 5%. Last weekend, the Ministry of Finance released favorable policies, including setting the tone to support local government debt risk mitigation, issuing special treasury bonds to support major state-owned banks to supplement capital, and supporting efforts to stop falling and stabilize the real estate market. Analysts believe that a series of incremental fiscal policies provide strong support for improving asset quality expectations and are beneficial for boosting bank stock valuations. Furthermore, a new type of interchange facilitation instrument recently created by the central bank also boosts confidence in dividend assets with strong stability.

Driven by multiple favorable policies, bank stocks have regained their “bullish path.” On October 14, the A-share banking sector once again led all major sectors with a flourishing trend across the board. All 42 bank stocks reported higher and closed higher, and many individual Chengnong Commercial Bank stocks rose more than 5%. Last weekend, the Ministry of Finance released favorable policies, including setting the tone to support local government debt risk mitigation, issuing special treasury bonds to support major state-owned banks to supplement capital, and supporting efforts to stop falling and stabilize the real estate market. Analysts believe that a series of incremental fiscal policies provide strong support for improving asset quality expectations and are beneficial for boosting bank stock valuations. Furthermore, a new type of interchange facilitation instrument recently created by the central bank also boosts confidence in dividend assets with strong stability.