The lifting of the tens of billions of restricted shares in Monday

May 17, the three-year listing of the Bank of communications began to enter the full circulation state.　　At present, the only restricted period of nearly billion shares will be lifted on that day. According to the Bank of communications yesterday, the listed circulation of the limited conditions of sale of shares for the initial public offering has issued 9.975 billion shares of domestic shares. Prior to the initial public offering, the bank issued 22.74 billion shares of the shares, including 9.975 billion shares held by the largest shareholder, the Treasury, promising to lock in the circulation of the market for three years since May 17, 2010.　　At present, Bank of communications total equity is 48,994,383,700 shares, including H-shares 23,064,468,100 shares. If the bank of communications yesterday close the closing price of 6.77 yuan, if the above-mentioned restricted shares are all reduced, will absorb nearly 67.7 billion yuan of funds. But since the holders of the shares are the Treasury, the possibility of real reduction is negligible, despite the lifting of the restrictions.　　For the Bank of communications, this reduction does not seem to bring negative impact. From a fundamental point of view, the full circulation has not shown the pressure on the share price. According to Security Securities forecast, Bank of communications 2010 net profit growth rate of 37.42%, considering a rights issue, corresponding to 2010 PE and PB respectively 10.89 times times and 1.92 times times.　　So valuations are now low in similar banks. Through first-quarter results, credit securities pointed out that the main profit drivers for bank of communications are scale expansion. But at the same time, from the chain view, the first quarter income rebound is small, only 2%, mainly due to spreads on the chain decline, offset the increase in fees net fee. Companies adhere to a more active business strategy, the total assets and fees to improve the scale of income faster, but the operating costs are higher, performance in the higher cost of capital and subsequent allocation of high pressure. However, in similar sectors, Bank of communications valuation is still low.