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| HSI1 | 23,026.68 | +354.82 | 315.38B |
| HSCEI1 | 7,605.34 | +144.50 | 95.65B |
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2026-06-29 12:36:27 UBS published a research report assessing the impact of the 2025 audit report recently released by the National Audit Office on Chinese bank stocks. The broker noted that the market reacted strongly to the news, with major listed Chinse bank H-shares generally coming under pressure on June 25. Among them, BANK OF CHINA (03988.HK) tumbled by 5.3%. However, UBS emphasized that the 25-page document is an annual fiscal report submitted by the National Audit Office to the Standing Committee of the National People’s Congress, rather than a sector-specific audit targeting the banking industry, and therefore the direct financial impact on the relevant banks is expected to be very limited. Nevertheless, UBS viewed the recent market adjustment as a sentiment-driven, temporary setback rather than a fundamental deterioration in Chinese banks’ fundamentals. Given the improving fundamentals of large banks, and in the absence of broader investigations or more significant balance sheet risks, the recent share price pullback may offer an accumulation opportunity for investors (with the 2026 H-share dividend yield of BANK OF CHINA expected to recover to 5.5%). UBS upheld a constructive view on the Chinese banking sector overall, particularly favoring banks with improving fundamentals alongside stronger governance and internal controls. ~ AASTOCKS Financial News Website: www.aastocks.com | |