Understanding the Market | Domestic bank stocks warmed up today, with the third-quarter reports showing a bottoming and stabilizing trend in performance. The sector is favorable as it enters a long-term capital allocation period at the end of the year
The domestic bank stocks rebounded today, with HUISHANG BANK rising 4.49%, China Construction Bank (CCB) rising 2.99%, Bank of China rising 2.27%, and ICBC rising 1.99%. The Q3 2025 report shows that the banking industry's performance is stable, with an increase in net profit growth rate. Xiangcai Securities believes that the decline in deposit costs and the narrowing of interest margins will support the stabilization of bank performance, and the issuance of policy financial instruments will boost credit demand. CITIC Securities pointed out that bank stocks attract inflows of allocation-type funds and recommends institutions to actively position themselves, expecting revenue and profit growth rates to continue to improve throughout the year
According to Zhitong Finance APP, bank stocks have warmed up today. As of the time of publication, Huishang Bank (03698) rose by 4.49% to HKD 3.49; China Construction Bank (00939) rose by 2.99% to HKD 7.93; Bank of China (03988) rose by 2.27% to HKD 4.5; Industrial and Commercial Bank of China (01398) rose by 1.99% to HKD 6.14.
In terms of news, the 2025 third-quarter reports for banks have been released, showing relatively stable revenue for listed banks and an increase in net profit growth rate. Xiangcai Securities released a research report stating that with the decline in deposit costs and the narrowing of interest margin declines, as well as steady growth in intermediary business income, the banking industry's performance is showing signs of bottoming out and stabilizing. Recently, the accelerated deployment of policy financial tools is expected to boost bank credit demand in the fourth quarter, with regional banks benefiting from the demonstration effect of major economic provinces, and asset expansion expected to remain resilient. As market investment styles rebalance, bank stocks' stable high dividends attract allocation funds, and the absolute investment value of bank stocks is optimistic.
CITIC Securities released a research report stating that the third-quarter financial reports of listed banks for 2025 show a stable operating pattern, with revenue and net profit attributable to shareholders increasing by 0.9% and 1.5% year-on-year, respectively (compared to growth of 1.0% and 0.8% in the first half of the year). The interest margin stabilization pattern is clear, and asset quality remains stable, with expectations for continued improvement in annual revenue and profit growth rates. Although bank stocks experienced a pullback after a rebound last week, CITIC Securities believes that the implied value space of low valuations remains significant; entering the year-end long-term capital allocation period will help catalyze the market performance of bank stocks, and institutions are advised to actively position themselves to reap high certainty returns
