0544 GMT - Chinese banks will likely gradually feel the impact of China's stimulus measures via a further squeeze on interest margins and loan yields in 1H, CCB International analyst Lawrence Chen says in a note. However, Chen says lenders' solid operating performance and earnings visibility should sustain "lucrative" dividend yields. "We remain optimistic of the share price performance of the China banks in 1H24F, as we wait to see how extensive the government's market bailouts will be," Chen says. CCB says it continues to prefer high-beta banks like China Merchants Bank and Postal Savings Bank of China, as well as banks with cheap valuations and high dividend yields, such as the four biggest Chinese banks and China Citic Bank. (hoishan.chan@wsj.com)
(END) Dow Jones Newswires
February 28, 2024 00:44 ET (05:44 GMT)
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