Market Insight | China Merchants Bank rises more than 3%, leading the gains in domestic banking stocks. The high dividend yield of banks still remains attractive for investment

China Merchants Bank rose more than 3%, leading the gains in domestic bank stocks, with Postal Savings Bank of China and Bank of China also seeing increases. Data released by the central bank shows that the year-on-year growth rate of social financing stock is 8.1%, with both new social financing and loans increasing. Analysis suggests that the attractive value of high dividend bank stocks is drawing interest, and it is expected that social financing and credit data will stabilize and rise. The fundamental performance of the banking industry for the whole year is expected to be stable, possibly leading to the introduction of interest rate reduction policies, with bank stocks poised to achieve excess returns