The combined total market capitalization of the A-share banking sector, calculated based on total share capital, stood at 14.17 trillion yuan as of the market close on June 30. This represents a substantial decline of 1.54 trillion yuan compared to its value at the end of the previous year, following the market close on December 31, 2024.
In terms of individual stock performance during the first half of the year, only 6 out of the 42 A-share listed banks saw their share prices rise. The remaining 36 banks recorded declines, accounting for over 80% of the sector.
Widespread Declines, with Shanghai Pudong Development Bank Leading Losses
Data from Tonghuashun iFinD shows that 36 of the 42 A-share listed banks saw their share prices fall in the first half of the year, with 21 of those experiencing double-digit percentage declines. Shanghai Pudong Development Bank Co.,Ltd. (SHA: 600000) led the losses, dropping more than 30% to become the worst-performing listed bank for the period.
Among the large state-owned banks, Agricultural Bank Of China Limited (SHA: 601288), which had surged over 50% in 2024, saw its share price retreat by more than 19% in the first half. Bank Of Communications Co.,Ltd. (SHA: 601328) also fell by 11.31%. Additionally, Industrial And Commercial Bank Of China Limited (SHA: 601398) and Postal Savings Bank Of China Co.,Ltd. (SHA: 601658) declined by 8.77% and 7.49% respectively, while Bank Of China Limited (SHA: 601988) saw a marginal decrease of 0.17%.
Among joint-stock banks, besides Shanghai Pudong Development Bank, Industrial Bank Co.,Ltd. (SHA: 601166) and China Minsheng Banking Corp.,Ltd. (SHA: 600016) both fell by more than 15%. China Everbright Bank Company Limited (SHA: 601818) and China Merchants Bank Co.,Ltd. (SHA: 600036) also posted double-digit declines. China Zheshang Bank Co.,Ltd. (SHA: 601916), Ping An Bank Co.,Ltd. (SHE: 000001), and China Citic Bank Corporation Limited (SHA: 601998) dropped by 9.55%, 9.01%, and 7.71% respectively. Hua Xia Bank Co.,Limited (SHA: 600015) had the smallest decline in this category but still fell by 5.52%.
For city commercial banks, Bank Of Zhengzhou Co.,Ltd. (SHE: 002936) and Bank Of Suzhou Co.,Ltd. (SHE: 002966) both fell more than 14%, declining by 14.51% and 14.37% respectively. Other banks like Bank Of Shanghai Co.,Ltd. (SHA: 601229), Bank Of Nanjing Co.,Ltd. (SHA: 601009), Bank Of Xi'An Co.,Ltd. (SHA: 600928), Bank Of Lanzhou Co.,Ltd. (SHE: 001227), Bank Of Beijing Co., Ltd. (SHA: 601169), and Bank Of Changsha Co.,Ltd. (SHA: 601577) also recorded double-digit percentage losses.
All rural commercial bank stocks closed lower. Zhejiang Shaoxing Ruifeng Rural Commercial Bank Co.,Ltd. (SHA: 601528) posted the largest decline in this group, falling 19.22%. Shanghai Rural Commercial Bank Co.,Ltd. (SHA: 601825) dropped 17.44%, the second-largest decline, while Wuxi Rural Commercial Bank Co.,Ltd. (SHA: 600908) fell by 14.33%.
Bright Spots: Bank Of Qingdao Tops Gainers, China Construction Bank Hits New High
In contrast to the broad weakness, six A-share listed banks managed to post share price gains in the first half of the year. Bank Of Qingdao Co.,Ltd. (SHE: 002948) led the gainers, rising over 17% cumulatively. Bank Of Chengdu Co., Ltd. (SHA: 601838), Bank Of Jiangsu Co.,Ltd. (SHA: 600919), and Bank Of Ningbo Co.,Ltd. (SHE: 002142) all gained more than 5%. China Construction Bank Corporation (SHA: 601939) advanced 3.77%, while Qilu Bank Co.,Ltd. (SHA: 601665) rose by 2.58%.
Notably, the share price of China Construction Bank showed strength earlier in the period. Based on closing prices, it reached a maximum gain of over 13% from the start of the year, hitting a new all-time high of 10.72 yuan per share on June 12. However, the price subsequently retreated, closing at 9.63 yuan per share on June 30.
Analysis suggests the valuation of the A-share banking sector is currently at its lowest level in nearly a year, presenting an attractive entry point for allocation-focused capital. Looking ahead to July, the performance of bank stocks is expected to improve. On one hand, following approximately three rounds of significant selling, pressure from large-scale institutional selling is anticipated to diminish marginally from a capital flow perspective. On the other hand, as the interim reporting season begins, the impact of earnings on share prices will increase. Interim results for banks are forecasted to continue a steady improvement trend, providing support for share prices.
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