Changes in Hong Kong stocks | Most domestic bank stocks rose, China CITIC Bank (00998) rose nearly 3%, ICBC (01398) rose more than 2%

The Zhitong Finance App learned that most domestic bank stocks rose. As of press release, China CITIC Bank (00998) rose 2.86% to HK$8.64; ICBC (01398) rose 2.46% to HK$7.7; Postbank (01658) rose 1.88% to HK$5.425; and Bank of China (03988) rose 1.59% to HK$6.075.

According to news, in the first half of this year, the six major banks achieved total revenue of over 2 trillion yuan, an increase of about 171.9 billion yuan over the previous year; realized net profit of about 712.6 billion yuan, an increase of nearly 30.1 billion yuan over the same period last year. Combining the mid-term profit distribution plans disclosed in parallel, all six major banks will continue to pay mid-term dividends. The total proposed dividend amount is close to 221 billion yuan, an increase of about 16.3 billion yuan over the same period last year, and the dividend ratio has generally increased to 31%.

CITIC Securities pointed out that from a medium-term perspective, the banking sector has entered the end of the risk cycle, and the ROE lead has improved. It is expected that the absolute ROE number of the industry will stabilize this year and next year, in the range of 8%-9%, helping the sector's valuation increase. It is expected that the banking sector will revalue from “high dividend defense assets” to “high certainty equity assets.” The banking sector will still reflect the upward direction of valuation, and the absolute profit margin will continue throughout the year.