Benchmarks tracking top mainland lenders like ICBC, CCB and Bank of China have risen 24 per cent in Hong Kong and 17 per cent in onshore markets
The rally in Chinese bank stocks is captivating retail investors from Hong Kong to Shanghai and Shenzhen, making it one of the hottest topics on mainland social media platforms, with many asking if it is too late to jump on the bandwagon.
Benchmarks tracking Industrial & Commercial Banking Corp (ICBC), China Construction Bank (CCB), Bank of China and their peers have risen 24 per cent in Hong Kong and 17 per cent in onshore markets. The market-beating gains are even more spectacular, coming after their best returns in 16 years in 2024.
The answers may be found in dividend payouts and sliding government bond yields, both of which have enticed insurance companies to allocate a bigger chunk of their assets into banking stocks, analysts said.
“Banks have been our top pick” within the financial sector since 2023, said Shujin Chen, an analyst at Jefferies. “For banks, the most obvious and important point is that they are relatively more likely to deliver stable returns, especially the large banks.”
