According to a report published by J.P. Morgan Chase, state-owned banks beat market expectations for the second quarter. Average revenue and profit increased 9% and 6% month-on-month, significantly ahead of the 1% increase and 9% decline of joint stock banks. Furthermore, state-owned banks raised their interim dividend payout rate by 1 percentage point. Although not significant, this is the first time since listing that the regular dividend rate has been raised, which is a positive sign for shareholder returns. The bank raised the Postbank rating from “neutral” to “increase”, and the target price from HK$5.1 to HK$5.9; downgraded Industrial Bank from “increase holdings” to “neutral”; and downgraded Huaxia Bank from “neutral” to “reduced holdings”. Within the scope of domestic bank stocks, the Bank of China and China Construction Bank are still the first choice. The target prices are HK$6.15 and HK$10.1, respectively, and all state-owned banks maintain an “increase in holdings” rating.

According to a report published by J.P. Morgan Chase, state-owned banks beat market expectations for the second quarter. Average revenue and profit increased 9% and 6% month-on-month, significantly ahead of the 1% increase and 9% decline of joint stock banks. Furthermore, state-owned banks raised their interim dividend payout rate by 1 percentage point. Although not significant, this is the first time since listing that the regular dividend rate has been raised, which is a positive sign for shareholder returns. The bank raised the Postbank rating from “neutral” to “increase”, and the target price from HK$5.1 to HK$5.9; downgraded Industrial Bank from “increase holdings” to “neutral”; and downgraded Huaxia Bank from “neutral” to “reduced holdings”. Within the scope of domestic bank stocks, the Bank of China and China Construction Bank are still the first choice. The target prices are HK$6.15 and HK$10.1, respectively, and all state-owned banks maintain an “increase in holdings” rating.