wangdizhe
Many people think bank stocks are not performing well, with earnings close to peaking. China's economic growth rate is declining, and the real estate sector has serious hidden dangers, which is why their valuations are so low.
Moreover, there have always been two opposing views on bank stocks: those who think they're no good will never see their value, while those who believe they're undervalued typically ignore the 'noise' and just hold onto them.
Here, let me share my perspective.
First,Investing is about comparison, requiring ongoing dynamic assessments to compare values, but this 'value' is long-term and mainly relies on foresight — including evaluating business models, analyzing financial statements, and gaining insights into future trends.
If it were five years ago, I wouldn't have allocated funds to banks because at that time, P2P or wealth management products offered stable returns of over 6%. Additionally, after the housing reform monetization in 2015, the central bank actually adjusted its policies. Therefore, the attractiveness of dividend yields from bank stocks was relatively low, while major real estate companies were at their peak profitability, meaning potential risks had not fully materialized.
But now, as China’s economic growth slows, based on the experience of developed countries, interest rates will surely decline in the future. Currently, even fixed-income products yielding 4% are being snapped up, so a dividend yield of 6-7.5% already shows a 'cost-performance' advantage. Furthermore, companies like Evergrande are almost bankrupt, and city commercial banks have frequently run into trouble this year. As a result, the risk control systems of major banks have become much stronger, and anyone with insight understands this.Profits are hidden in provisions far exceeding standard requirements。
Many investments...