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Thursday, July 28, 2016
Capital Flooding Into Banks : What's Behind It?
ANBOUND

Recently, the capital market set off a wave of buying bank equity.

The research team at ANBOUND Consulting is of the view that the market capital is flooding into the bank assets because on the one hand, the banks can bring the convenience of financial integration along with other competition edges while on the other hand, the low interest rate and negative interest rate environment has changed the preference of the investors.

In addition, this trend is also closely related to the needs to alleviate banks' operational pressure by replenishing their capitals through equity financing.

In light of the surplus of capital as well as the low investment return, this trend will continue for quite some time.

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