Why are bank stock prices so low, and why are bank stock prices so low?

The reason why the stock price of bank stocks is so low:

Bank stocks are large, general institutions can't eat, bank stocks are very large, and you and institutions will not speculate on this kind of **, ** profit is not large, you can do the middle line. To do it, you can buy small-capitalization bank stocks. The plate of bank stocks is large, and it is more difficult to drive funds, and only such super large accounts buy them, and this kind of funds are generally in slow motion, and the start is very slow, so the effect of making money is relatively poor.

And the funds are all free capital and private equity, they like speed, so small caps are their first choice, so bank stocks are not suitable for doing, so I don't know if you can understand. Today's bank stocks are best for long-term holdings. Not suitable for ** Speculation must be moderate 3-5 billion circulation.

**Investment fluctuates with market changes, it is possible to rise or fall, and no one can predict whether it will rise in the future. Entering the market is risky, and investment needs to be cautious. Before making any investment, you should ensure that you fully understand the investment nature and risks involved in the product, and carefully evaluate the product in detail before making your own judgment on whether to participate in the transaction.

There are four main reasons for the low stock price of banks:

1. The decisive factor of stock price is PE (price-earnings ratio), stock price = price-earnings ratio x earnings per share.

The market value of ** is inversely proportional to the interest rate, the higher the real interest rate, the lower the stock price, the real interest rate remains high, the income of legitimate financial products can exceed 10%, the conversion of private lending into a price-earnings ratio is 5-10 times, and the risk is far less than **, the real interest rate has begun to decline in the past two years, the risk of private lending has increased sharply, and the business is becoming more and more difficult to do. This set the stage for the arrival of a bull market.

2. Lack of long-term capital to enter the market

Bank stocks are very large, and the capital and institutions will not speculate on this kind of **, ** profit is not large, you can do the middle line, you can buy small market value bank stocks to do **, the plate of bank stocks is large, it is more difficult to drive the funds, and only ** This kind of super large account buys, this kind of funds are generally in slow motion, and the start is very slow.

3. Homogeneity of the banking industry:

Due to the very strict supervision of China's banking industry and the long-term shortage of funds, the business of each bank is similar, and there is not much difference between buying ICBC and buying CCB.

4. Psychosocial factors:

Psychosocial factors are the most mysterious causes. Everyone will do something ridiculous in their life that their own reason cannot explain, and so will society. Also, bank stocks are so low that everyone will probably find it incredible for many years.

The reasons for its existence are as follows:

1. Bank stocks have more circulating share capital, large plates, and it is not easy for dealers to control the disk and pull up, and the funds and institutions will not speculate on this kind of **, and the lack of attention to funds leads to its slow trend**.

2. Most investors have little confidence in the long-term prospects of bank stocks, which will also affect the rise of bank stocks.

3. Although banks have a strong monopoly and make profits, they also have more bad debts and bad debts, which leads to their stock prices for a long time.

Of course, this does not mean that bank stocks have no purchase value, in the case of poor market, investors can buy some banks to avoid the risk of a market crash, and at the same time, for long-term new investors, they can choose to buy bank stocks to ensure the stability of market value, and can obtain certain dividends.

Extended information: ** (stock) is part of the ownership of the joint-stock company, and it is also a certificate of ownership issued by the joint-stock company to each owner as a shareholding certificate for the purpose of raising funds and a valuable ** to obtain dividends and bonuses. **It is a long-term credit instrument in the capital market, which can be transferred, bought and sold, and shareholders can share the company's profits with it, but also bear the risk caused by the company's operating errors.

Each share** represents a shareholder's ownership of a basic unit of the business. Every public company will issue a **.

Each copy of the same category** represents equal ownership of the company. The size of the ownership share of the company owned by each owner depends on the proportion of the number of shares held by the owner in the total share capital of the company.

** It is a component of the capital of a joint-stock company, which can be transferred, bought and sold, and is the main long-term credit instrument in the capital market, but the company cannot be required to return its capital contribution.

** It is a certificate that the owners (i.e. shareholders) of a joint-stock enterprise (listed and unlisted) own the company's assets and interests. The listed ** is called tradable shares, which can be freely traded on the ** exchange (i.e., the secondary market). Unlisted shares are not traded on the exchange, so they cannot be freely traded, and are called unlisted tradable shares.

This ownership is a comprehensive right, such as participation in shareholders' meetings, voting criteria, participation in major decisions of the company, receipt of dividends or sharing of dividends, etc., but also the risk of operating errors of the company is shared.

** is a valuable **, is a share certificate issued by a joint-stock company to investors when raising capital, representing the ownership of its holders (i.e. shareholders) to the joint-stock company. ** is the abbreviation of share certificate, which is a kind of value issued by a joint-stock company to shareholders as a shareholding certificate in order to raise funds and obtain dividends and bonuses. Each share** represents a shareholder's ownership of a basic unit of the business.

**It is a component of the capital of a joint-stock company, which can be transferred, bought and sold or pledged for a value, and is the main long-term credit instrument in the capital market.

Some P/E ratios are very low, such as bank stocks with P/E ratios lower than 6, why can't this kind of P/E rise.

In fact, most of the investors of ** bank stocks are long-term investors, and bank stocks have always been characterized by generous dividends, which can bring additional cash income to investors. It can even be said that some prudent investors prefer to hold bank stocks as a new position for a long time, and do not care too much about the short-term rise and fall of bank stocks.

Judging from the historical trend, every time bank stocks rise sharply**, it is during the A-share bull market, so it is not surprising that the price-earnings ratio of bank stocks is very low, but it cannot rise.

Bank stocks are generally ** stocks, so if they rise. It doesn't fluctuate much. However, bank stocks are also generally high-performing stocks and can be held for a long time.

First of all, bank stocks are all ** stocks, and the current trading volume cannot pull bank stocks at all.

Bank stocks are generally the national team sitting in the bank, which is the national team, which is generally drought and flood income, and has a strong sense of policy, highly in line with the country's overall strategy. So, these people won't take it lightly.

**Most of the active funds in the capital are floating funds, composed of private equity, large accounts, medium accounts, etc., the amount of funds is not large (compared with the national team), there is no background, and it depends on the face of the Securities Regulatory Commission and the senior management. So they shoot for shot, like small and medium plates, and are easy to handle.

Banking and finance are generally stable current economic conditions, and due to the bad illness caused by the epidemic, there is no financial one.

Bank stocks generally rise when the big bull market comes, or when there is super good news for the banking industry, it is not a big bull market, and there is no super good news for the banking industry, so bank stocks are not rising now.

In fact, there are many reasons why bank stocks are not rising, and one of them is caused by the general environment, so it will affect the small environment, which is not optimistic.

Because the current economy is very sluggish. A financial crisis could erupt at any moment, and then banks could be run out. Banks are at risk of failing once they are collectively destroyed. So how can your stock go up?

If bank stocks do not rise, they will be relatively stable, which is also determined by the socio-economic situation. Most of them are in a steady state. Therefore, it is relatively better for shareholders.

This year, the economy has fallen so badly, how can it rise?

At present, the economic environment is not good, and there are few ** rises.

Generally, bank stocks are large, not liquid, and priced at the time of issuance.

It's not just that the banks are not rising, many are not working, don't speculate.

Hello, because this is all under control, this will not be the case.

The bank's ** does not rise, which means that people are saving to make a big move, and when the performance is really good, then his rise is a sharp rise.

Each kind of ** has a rise, a fall, and is affected by the market.

The reason why bank stocks are performing well and their stock prices are low.

1. China's first speculative atmosphere is heavy and there is less value investment, so few people choose Yinwuling stocks;

2. In terms of growth hunger or sex, the growth rate is restricted by the fact that the capital disk is too large and the increase is small; 3. There is a problem with the dividend mechanism and the performance is good, but the majority of shareholders do not earn, or the income is not directly linked to the performance, so investors don't like to hold it! The above three points are destined for good performance and low stock prices of bank stocks.

If in terms of profitability, the bank is a first-class policy-oriented, drought and flood industry, basically there is no big loss, and there will be no big outbreak, which is consistent with the macroeconomic situation.

In terms of net assets, they are all about 20% off, and there is not much room for **.

There is also a fixed dividend every year, which is basically around 5%. Long-term funds will definitely be allocated to a part.

Then there are the tickets, many new ones use bank stocks as tickets, and they also value stability and a high margin of safety.

The above is an analysis of the bank stocks themselves.

And from the point of view of **, the weight of the bank is relatively high, if **, the index will **, ** funds will also enter the market, and it will naturally be held up.

So the fall won't be deep.

Because it has a low valuation, and it hasn't risen much overall.

Banks have always been known for their small fluctuations.

Due to the large size of bank stocks, the rise and fall are not very large. Of course, there are some individual ** and sometimes exceptions.

Recently, the stock price of banks has risen sharply, which has attracted a lot of attention in the market. So why are bank stocks soaring? In our view, this is mainly due to market and policy factors.

First of all, market factors are the main reason for the sharp rise in bank stock prices. With the development of the economy and the improvement of people's income level, the business volume of banks is also increasing. At the same time, policy factors have also had a positive impact on bank share prices.

For example, China has recently launched a series of financial reform policies, including easing market access barriers for financial institutions and promoting new fintech sources, which have helped to promote the development and innovation of banking business, thereby driving the stock price of banks.

So, what will the future hold for bank stocks? In our view, the future direction of bank stocks will be influenced by a number of factors. First of all, with the development of the economy and the opening of the financial market, the competition in the banking business will become more intense.

Second, changes in regulatory policy will also have an impact on bank share prices. For example, if regulatory policies are tightened, it may have a negative impact on the development and innovation of the banking business, which in turn will dampen the growth of the bank's share price.