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<Research>BOCI: ICBC Top Pick Among CN Bank H-Shrs; RMB50T+ Deposits to be Repriced to Ease NIM Pressure
Recommend 22 Positive 30 Negative 17 |
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BOCI published a research report maintaining an Overweight rating on the Chinese banking sector H-shares, listing specific recommendations, with ICBC (01398.HK) as the top pick due to its relatively attractive valuation among peers. It also recommended buying ABC (01288.HK), CM BANK (03968.HK), CCB (00939.HK), PSBC (01658.HK), and CEB BANK (06818.HK). With over RMB50 trillion in long-term time deposits maturing in 2026, the banking sector is expected to face a repricing window for liabilities, which will immensely alleviate the downward pressure on NIM that has troubled the industry in recent years, BOCI said. 2026 will open the largest liability repricing window in history of the banking industry. The report highlighted that this will not only slow the decline in NIM but also create conditions for the recovery of bank profitability. Despite facing NIM pressure, the report believed that the fundamentals of the banking industry will remain robust in 2026. The commercial banks covered by BOCI are expected to achieve slim YoY growth in net profit attributable to the parent company in 2025, with growth accelerating to about 2% in 2026. AASTOCKS Financial News Website: www.aastocks.com |
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