Bank stocks have made a comeback this year, becoming "gods," with five banks entering the top ten in the entire market, as ICBC and ABC compete for the title of "king of market value."

The journey of valuation discovery for financial stocks is changing the internal structure of the A-share market.

Following the reversal of Industrial and Commercial Bank of China (ICBC) surpassing Kweichow Moutai in early June to secure the top spot in A-share market capitalization, Agricultural Bank of China (ABC) has once again emerged strongly. As of the close on August 6, ABC surpassed ICBC to become the number one in A-share market capitalization, with ICBC falling to second place, while China Merchants Bank and Bank of China both entered the top seven in market capitalization.

At the same time, if ranked by total market capitalization, ICBC remains the leader in the entire market, with ABC closely following in second place. China Construction Bank, Bank of China, and China Merchants Bank are all within the top ten in the industry, finally highlighting the position of bank stocks in the Chinese economy.

After a significant rise in the first half of the year, the valuations of bank stocks that entered the top ten are not high. Except for China Merchants Bank, which has a latest price-to-book ratio of 1.07 times, the valuations of the other four major state-owned banks are all below 0.88 times, indicating substantial potential from a valuation perspective.

ABC Becomes A-share Market Capitalization Champion

According to Wind data, as of the close on August 6, 2025, after a jump of 1.22% on that day, Agricultural Bank of China's A-share market capitalization reached 2.11 trillion, surpassing ICBC and claiming the title of A-share market capitalization champion.

ABC and ICBC are the only two A-share stocks with a market capitalization exceeding 2 trillion. The third place, Kweichow Moutai, has an A-share market capitalization of less than 1.79 trillion and has been declining this year.

Additionally, Bank of China ranks fifth, and China Merchants Bank ranks seventh, forming the first tier of A-share market capitalization and competing within bank stocks.

ICBC Still the Total Market Capitalization "Champion"

Moreover, in terms of total market capitalization, ICBC still leads ABC by "half a position."

According to Wind data, as of the close on August 6, 2025, ICBC, ABC, and China Construction Bank are the top three in the industry, firmly occupying the forefront of total market capitalization.

Additionally, Bank of China ranks sixth in total market capitalization, and China Merchants Bank ranks ninth. Postal Savings Bank and Bank of Communications are also among the top twenty. In the leading camp of mainland listed companies, bank stocks still account for "half the territory."

It is reported that the differences in A-share market capitalization and total market capitalization rankings are mainly related to the listing patterns of each bank. Most of ABC's shares are listed in A-shares, while most of ICBC's and Bank of China's shares are listed in A-shares, and most of China Construction Bank's shares are listed in Hong Kong stocks. These differences have a certain impact on market capitalization rankings.

Strong Growth This Year

The aforementioned rankings are also the result of bank stocks gradually gaining market recognition and valuation discovery in recent years Especially in 2025, the stock prices of various banks have shown significant increases, with growth rates exceeding the market average.

As of August 6, Shanghai Pudong Development Bank's stock has risen over 38% this year, and Agricultural Bank of China's stock has also approached a 30% increase, making them the two leading banks in terms of growth this year.

During the same period, Industrial Bank's stock has risen over 25%, China Merchants Bank's stock has approached a 20% increase, and Industrial and Commercial Bank of China's stock has also approached a 17% increase.

Such growth rates far exceed the Shanghai Composite Index's increase of 8.4% during the same period, as well as the CSI 300 Index's increase of 4.5%.

Price-to-Book Ratio Still Not High

Additionally, from a market valuation perspective, the valuations of various bank stocks remain low.

Looking at the price-to-book ratio, after a significant rise in the first half of the year, the valuations of the top ten banks in the industry are not high. Except for China Merchants Bank, which has a latest price-to-book ratio of 1.07 times, the valuations of the other four major state-owned banks are all below 0.88 times, indicating substantial potential from a valuation perspective.

Although the growth rate of bank stocks has declined in recent years, most still maintain a good net profit margin or possess a high return on equity level.

Given such operational performance, it is reasonable that most bank stocks are still valued below their net assets (i.e., below the total investment and profit accumulation over the years), making them a focus of market exploration.

Risk Warning and Disclaimer

The market carries risks, and investments should be made cautiously. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial conditions, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investing based on this is at one's own risk