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| HSCEI1 | 7,460.84 | -147.54 | 100.47B |
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2026-06-26 12:32:04 In its report, JPMorgan stated that its order of preference for Chinese financial stocks is brokers > insurers > Chinese banks. In the broker sector, JPMorgan spotted structural drivers for EPS growth and ROE expansion, and expected Chinese brokers' EPS for FY2026 to grow by about 30% YoY, driving average ROE to around 10%. Its top picks among brokers are CICC (03908.HK) and CITIC SECURITIES (600030.SH) A shares. The broker noted that key positive catalysts for brokers include policy support reiterated by regulators at the Lujiazui Forum, continued household asset reallocation from deposits to financial markets, and faster market turnover driven by capital rotation into AI ecosystem stocks. For the insurance sector, the broker considered the equity market rebound, robust NBV growth especially in the bancassurance channel, and attractive risk-reward offers an attractive re-entry point to the sector. Its top picks included CHINA LIFE (02628.HK) and PING AN (02318.HK). Conversely, JPMorgan remained relatively cautious on Chinese banks, expecting limited positive catalysts from 2Q results and noting that a report by the National Audit Office suggests potential earnings headwinds. In addition, de-fusing geopolitical risks may give rise to capital rotation out of H-share Chinese banks. Among major SOE banks, the broker was more constructive on CCB (00939.HK) in the short term and BANK OF CHINA (03988.HK) in the medium term. ~ AASTOCKS Financial News Website: www.aastocks.com | |