Citi Optimistic About Leading Chinese Banks; Favorites Include ICBC, CCB, and Bank of China
Chinese Banks' 3Q25 Performance: Citi's report indicates that Chinese banks generally met expectations for 3Q25, with a slight decline in pre-provision profit due to weak trading income, despite improvements in net interest margins (NIM) and fee income.
Individual Bank Highlights: BANK OF CHINA exceeded market expectations with strong NIM and trading income, while MINSHENG BANK, CEB BANK, and BANK OF CHENGDU fell short of expectations.
Future Outlook: Citi anticipates BANK OF CHINA will outperform in 4Q25 and 1Q26 due to increased insurance fund purchases and capital rotation, favoring major banks like ICBC and CCB for their positive earnings growth and high dividend yields.
Citi's Top Picks: The broker's top recommendations include ICBC, CCB, and BANK OF CHINA, highlighting their attractive valuations and strong dividend yields in the context of the Chinese banking sector.
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G Sachs Evaluates Ratings and Price Targets for Chinese Banks (Table)
ICBC Performance: ICBC shares decreased by 1.233%, with a short selling ratio of 16.197% and a neutral rating of 5.8.
Bank of China Update: Bank of China shares fell by 1.071%, with a short selling ratio of 12.697% and a buy rating of 4.94.
CM Bank Insights: CM Bank shares rose by 0.418%, with a significant short selling ratio of 31.262% and a buy rating of 52.96.
Market Trends: Other banks like CCB and ABC also experienced slight declines, while PSBC maintained a buy rating despite a minor drop in share price.
G Sachs: Potential Capital Infusion into ICBC/ABC Could Result in Up to 7% EPS Dilution
Capital Injection Plans: Chinese authorities are set to inject RMB300 billion into two major state-owned banks, ICBC and ABC, as reported by Goldman Sachs, which did not confirm the rumor but assessed its potential impact.
Impact on Financial Metrics: If the capital injection occurs, it could lead to an estimated 4-7% dilution in EPS and a maximum of 2% dilution in BVPS, while potentially increasing the CET1 ratio by 54 to 61 basis points.
Stock Selection Preferences: Goldman Sachs favors banks with solid balance sheets that have completed capital replenishment, such as CCB, Bank of China, and CM Bank, which are seen as having greater potential for dividend increases.
Current Ratings and Uncertainties: Goldman Sachs maintains a Neutral rating on ICBC and ABC with target prices of HKD5.8 and HKD4.95, respectively, citing uncertainties regarding the capital injection's size, timing, and valuation.
Report: ICBC and ABC Investment Physical Gold Products Sold Out
Investment Products Availability: Several investment physical gold products from ICBC and ABC are marked as "temporarily out of stock," with some completely sold out, while other banks like Bank of China, CCB, and Bankcomm still have their physical precious metals series available.
Short Selling Data: The short selling figures for ICBC, ABC, Bank of China, CCB, and Bankcomm indicate varying levels of short selling activity, with ABC having the highest short selling ratio at 14.597%.
<Full-day Summary> HSI Falls 580 Points; HSTI Declines 122 Points; CCB and XIAOMI Drop Over 3%; NEW ORIENTAL, SHK PPT, HUABAO INTL, ZOOMLION, and HANG LUNG GROUP Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 580 points (2.1%) to 27,387, with significant declines in other indices, including HSTI and HSCEI, and a market turnover of $301.61 billion.
Active Heavyweights: Major stocks like CCB, Xiaomi, Tencent, and Alibaba experienced notable declines, with short selling ratios indicating increased market activity against these stocks.
Significant Declines: CSPC Pharma, Chinahongqiao, and Zijin Mining saw substantial drops of over 9%, reflecting a broader trend of falling stock prices among HSI and HSCEI constituents.
Gainers and New Highs: New Oriental and Huabao International were among the few gainers, with New Oriental hitting a new high, while several other stocks, including SD Gold and Jiangxi Copper, faced significant losses.
CCB to Increase Minimum Requirement for Personal Gold Savings Plan Next Week
Stock Performance: CCB (00939.HK) experienced a decline of 2.328%, with short selling amounting to $120.18 million and a ratio of 12.243%.
Gold Savings Plan Adjustment: Starting February 2, the minimum amount for personal gold savings plans will increase to RMB1,500.
Existing Plans Unaffected: Current regular savings plans that have already been established will continue to operate as usual without any changes.
Market Data Note: HK stock quotes are delayed by at least 15 minutes, with short selling data as of January 30, 2026.
Midday Update: HSI Ends at 27,975, Gaining 148 Points; HSTI at 5,860, Dropping 39 Points; SANDS CHINA LTD Falls Over 7%; XINYI GLASS, ZIJIN MINING, CNOOC, HENDERSON LAND, AIA Reach New Peaks
Market Performance: The HSI rose by 148 points (0.5%) to 27,975, while the HSTI fell by 39 points (0.7%) to 5,860, and the HSCEI increased by 43 points (0.5%) to 9,555.
Active Heavyweights: Notable stock movements included PING AN (+1.9%), XIAOMI (+1.5%), and CCB (+1.5%), while BABA saw a slight decline of 0.2%.
Significant Movers: SANDS CHINA LTD dropped significantly by 7.3%, whereas LONGFOR and XINYI GLASS saw gains of 5.6% and 5.1%, respectively, with XINYI hitting a new high.
High Performers in HSMI & HSSI: LOGAN GROUP surged by 29.1%, SUNAC by 27.2%, and COUNTRY GARDEN by 20%, indicating strong performance among certain stocks in the market.
G Sachs Evaluates Ratings and Price Targets for Chinese Banks (Table)
ICBC Performance: ICBC shares decreased by 1.233%, with a short selling ratio of 16.197% and a neutral rating of 5.8.
Bank of China Update: Bank of China shares fell by 1.071%, with a short selling ratio of 12.697% and a buy rating of 4.94.
CM Bank Insights: CM Bank shares rose by 0.418%, with a significant short selling ratio of 31.262% and a buy rating of 52.96.
Market Trends: Other banks like CCB and ABC also experienced slight declines, while PSBC maintained a buy rating despite a minor drop in share price.
G Sachs: Potential Capital Infusion into ICBC/ABC Could Result in Up to 7% EPS Dilution
Capital Injection Plans: Chinese authorities are set to inject RMB300 billion into two major state-owned banks, ICBC and ABC, as reported by Goldman Sachs, which did not confirm the rumor but assessed its potential impact.
Impact on Financial Metrics: If the capital injection occurs, it could lead to an estimated 4-7% dilution in EPS and a maximum of 2% dilution in BVPS, while potentially increasing the CET1 ratio by 54 to 61 basis points.
Stock Selection Preferences: Goldman Sachs favors banks with solid balance sheets that have completed capital replenishment, such as CCB, Bank of China, and CM Bank, which are seen as having greater potential for dividend increases.
Current Ratings and Uncertainties: Goldman Sachs maintains a Neutral rating on ICBC and ABC with target prices of HKD5.8 and HKD4.95, respectively, citing uncertainties regarding the capital injection's size, timing, and valuation.
Report: ICBC and ABC Investment Physical Gold Products Sold Out
Investment Products Availability: Several investment physical gold products from ICBC and ABC are marked as "temporarily out of stock," with some completely sold out, while other banks like Bank of China, CCB, and Bankcomm still have their physical precious metals series available.
Short Selling Data: The short selling figures for ICBC, ABC, Bank of China, CCB, and Bankcomm indicate varying levels of short selling activity, with ABC having the highest short selling ratio at 14.597%.
<Full-day Summary> HSI Falls 580 Points; HSTI Declines 122 Points; CCB and XIAOMI Drop Over 3%; NEW ORIENTAL, SHK PPT, HUABAO INTL, ZOOMLION, and HANG LUNG GROUP Reach New Peaks; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) fell by 580 points (2.1%) to 27,387, with significant declines in other indices, including HSTI and HSCEI, and a market turnover of $301.61 billion.
Active Heavyweights: Major stocks like CCB, Xiaomi, Tencent, and Alibaba experienced notable declines, with short selling ratios indicating increased market activity against these stocks.
Significant Declines: CSPC Pharma, Chinahongqiao, and Zijin Mining saw substantial drops of over 9%, reflecting a broader trend of falling stock prices among HSI and HSCEI constituents.
Gainers and New Highs: New Oriental and Huabao International were among the few gainers, with New Oriental hitting a new high, while several other stocks, including SD Gold and Jiangxi Copper, faced significant losses.
CCB to Increase Minimum Requirement for Personal Gold Savings Plan Next Week
Stock Performance: CCB (00939.HK) experienced a decline of 2.328%, with short selling amounting to $120.18 million and a ratio of 12.243%.
Gold Savings Plan Adjustment: Starting February 2, the minimum amount for personal gold savings plans will increase to RMB1,500.
Existing Plans Unaffected: Current regular savings plans that have already been established will continue to operate as usual without any changes.
Market Data Note: HK stock quotes are delayed by at least 15 minutes, with short selling data as of January 30, 2026.
Midday Update: HSI Ends at 27,975, Gaining 148 Points; HSTI at 5,860, Dropping 39 Points; SANDS CHINA LTD Falls Over 7%; XINYI GLASS, ZIJIN MINING, CNOOC, HENDERSON LAND, AIA Reach New Peaks
Market Performance: The HSI rose by 148 points (0.5%) to 27,975, while the HSTI fell by 39 points (0.7%) to 5,860, and the HSCEI increased by 43 points (0.5%) to 9,555.
Active Heavyweights: Notable stock movements included PING AN (+1.9%), XIAOMI (+1.5%), and CCB (+1.5%), while BABA saw a slight decline of 0.2%.
Significant Movers: SANDS CHINA LTD dropped significantly by 7.3%, whereas LONGFOR and XINYI GLASS saw gains of 5.6% and 5.1%, respectively, with XINYI hitting a new high.
High Performers in HSMI & HSSI: LOGAN GROUP surged by 29.1%, SUNAC by 27.2%, and COUNTRY GARDEN by 20%, indicating strong performance among certain stocks in the market.
