Xinhua News Agency, June 7 / PRNewswire-Asianet /-- China International Capital Corporation believes that from a long-term perspective, the current bank valuation is systematically undervalued, mainly because banks need to maintain a reasonable level of profits and endogenous capital replenishment in order to effectively support the real economy and achieve the "2035 target." the current ROE and interest rate spreads have fallen to a long-term reasonable floor. To restore the financing ability of banks' market-oriented rights and interests, it is also necessary to raise the valuation. Given that ROE and interest spreads are expected to hit bottom for a long time and there is room for improvement in asset quality, bank stocks are expected to repair to the 2020-2021 average forward price-to-book ratio of 0.7-0.8x, compared with the current 0.5x implying a 50 per cent upside. Taking into account the 30 per cent discount of H-share state-owned big banks, H-share repair room is higher than A-share. Reiterate the recommendation of state-owned banks with sound operation, high dividends and room for improvement.