To The Moon

As of the close on October 28, Agricultural Bank of China Ltd (ASX: 601288) closed at 7.43 yuan, setting a new yearly high on a forward-adjusted basis, and touched an intraday yearly peak of 7.45 yuan on a forward-adjusted basis.

Recently, the banking sector as a whole has maintained a strong trajectory, with state-owned major banks performing relatively well. As a representative of high dividends, the stable cash flow returns of state-owned major bank stocks constitute an attractive proposition for insurance funds, wealth management products, and long-term allocation capital.

Fitch Upgrades Agricultural Bank of China's Rating

On October 27, Fitch affirmed Agricultural Bank of China Ltd (ASX: 601288)'s long-term issuer default rating at "A" and upgraded its viability rating to "bbb+," reflecting international market confidence in the credit quality of Agricultural Bank of China and other state-owned major banks.

Bank Stock Valuations Continue to Recover, AH Share Premium Widens

Recently, A-share bank stocks have shown strong performance, with valuations undergoing further repair, and the AH share premium of state-owned major banks has widened compared to the first half of the year. As of the close on October 27, 2026, the average price-to-book ratio of 42 A-share listed banks recovered from 0.54 times at the end of the first half to 0.61 times. Currently, three A-share listed banks have a price-to-book ratio above 0.9 times, and Agricultural Bank of China Ltd (ASX: 601288) is the only state-owned major bank exceeding 0.9 times.