Hong Kong-listed mainland banking stocks advanced against the broader market trend, with Bank of Gansu (02139) rising 5.37% to HK$0.255, Minsheng Bank (01988) gaining 2.43% to HK$3.165, ICBC (01398) climbing 2.35% to HK$7.615, and CM Bank (03968) up 0.96% to HK$52.65 as of press time.
On the news front, ICBC's A-shares hit a record intraday high on October 27. Ping An Bank became the first listed bank to release its third-quarter report, with revenue and net profit continuing the "double growth" momentum from the first half of the year. Brokerages have recently been publishing intensive assessments of listed banks' third-quarter performance, generally expecting revenue and net profit attributable to parent companies to maintain a strengthening trend.
CITIC Securities research estimates that listed banks' revenue and net profit attributable to parent companies for the first three quarters are expected to grow 7.2% and 3.2% year-on-year respectively. Changjiang Securities noted that bank stocks remain in a process of undervaluation repair and dividend value revaluation this year, with market style and risk appetite affecting only the pace of short-term recovery rather than its direction.
Even amid a high-risk-appetite environment with net capital outflows in the first half, some bank stocks still reached record highs. In the second half, as style rebalancing occurred, core bank stocks further hit new highs. Considering the fundamental characteristics and valuation dividends of this cycle, we continue to view quality city commercial banks among state-owned bank A-shares as core holdings, and particularly highlight currently lagging targets.
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