News Sharing
For sharing news, please enter the email address of you and the receiver, then press SEND button.*Mandatory Fields
Receiver*
Enter email addresses, separated by semicolon (;). E.g. a@a.com;b@b.com
Your email address*
 Content Sharing
<Research>Citi Prefers CMB in ST; Buying Opportunity May Present if 6 Key CN Banks Overcorrect
In 4Q24, the majority of Chinese banks covered by Citi, excluding Ping An Bank (000001.SZ) and MINSHENG BANK (01988.HK), posted impressive net profit growth. Among them, CM BANK (0...
Reset
Send
The window will close in 5 seconds
<Research>Citi Prefers CMB in ST; Buying Opportunity May Present if 6 Key CN Banks Overcorrect
Close
Recommend
40
Positive
71
Negative
37
 
SHORT SELL
 
STOCK INFO

In 4Q24, the majority of Chinese banks covered by Citi, excluding Ping An Bank (000001.SZ)  +0.100 (+0.887%)   and MINSHENG BANK (01988.HK)  +0.040 (+1.093%)    Short selling $38.54M; Ratio 30.641%   , posted impressive net profit growth. Among them, CM BANK (03968.HK)  -0.350 (-0.768%)    Short selling $137.95M; Ratio 19.245%   manifested the strongest YoY PPOP growth at 13.8%, while Changshu Bank (601128.SH)  +0.040 (+0.570%)   was the weakest, declining 10.9% YoY. In terms of profit growth, CQRC BANK (03618.HK)  +0.140 (+2.652%)    Short selling $5.28M; Ratio 8.229%   led with a 27.2% YoY hike, while Ping An Bank trailed behind with a 29.9% YoY drop. The 4Q24 results of most covered banks aligned with expectations, with ABC (01288.HK)  +0.020 (+0.426%)    Short selling $69.28M; Ratio 16.654%   , Industrial Bank (601166.SH)  -0.010 (-0.047%)   , and CQRC BANK beating, whereas Ping An Bank and MINSHENG BANK fell short.

Citi expressed a short-term preference for CMB, noting that capital restructuring among the six major Chinese banks could lead to equity dilution ranging from 4% to 17%, aligning their dividend yields with CMB’s A-shares and H-shares at 4.6% and 4.7%, respectively. In the absence of national service risks, CMB could attract capital rotation and outperform the broader market. However, Citi added that if the share prices of the six major banks overcorrect, pushing their dividend yields to attractive levels, a buying opportunity may present.

Related NewsJP Morgan Upholds Positive View on CN Banks
The broker anticipated that the stock prices of these major banks will remain underpinned by several factors: (1) the national team may purchase large-cap A-share bank stocks with significant index weightings to stabilize market indices; (2) large state-owned insurers/ mutual funds are required to invest 30% of “new premiums” in A-shares or increase A-share holdings by over 10% annually, which could inject more than RMB1 trillion into the A-share market, benefiting banks with high index weightings; and (3) unlisted insurers, upon adopting IFRS 9 standards (by January 2026), may increase investments in high-dividend-yield bank stocks as assets classified as fair value through other comprehensive income (FVOCI).
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-04-02 16:25.) (A Shares quote is delayed for at least 15 mins.)

AAStocks Financial News
Copyright(C) AASTOCKS.com Limited 2000. All rights reserved.
Disclaimer: AASTOCKS.com Ltd, HKEx Information Services Limited, its holding companies and/or any subsidiaries of such holding companies endeavour to ensure the accuracy and reliability of the Information provided but do not guarantee its accuracy or reliability and accept no liability (whether in tort or contract or otherwise) for any loss or damage arising from any inaccuracies or omissions.