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<Research>CICC Suggests Selective Allocation to Major CN State-Owned Banks & CM BANK w/ High & Stable Div. as CN Banks' Div. Still Attractive
Recommend 30 Positive 49 Negative 16 |
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According to CICC's research report, the results delivered by Chinese banks for 2024 showed signs of marginal improvement in fundamentals, which were generally in line with the broker's expectations. The recovery showed in their results was mainly attributable to the slowdown in the decline of interest margins brought about by alleviated liability cost pressure, the realization of floating gains from bond-related investment returns, and provision savings from a drop in expected risk levels. With the recovery in credit demand still muddy, potential pressure on asset quality (especially in retail credit), and bond yield fluctuations, however, the sustainability of these improvements will hinge on the further effects of policy stimulus on the macroeconomy. In terms of investment in Chinese banks, CICC recommended that investors should continue paying attention to the effects of policy implementation, particularly the impact of support policies on residents' income expectations and consumption willingness. While bank dividends remained attractive, the broker suggested selective allocation to banks with high dividends and stable payouts, such as major state-owned banks and CM BANK (03968.HK), and close attention to targets in regions with stable economies or marginally improving economic expectations. AAStocks Financial News |
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