GO
| HSI1 | 24,917.60 | +111.97 | 192.63B |
| HSCEI1 | 8,284.58 | +38.25 | 51.08B |
| Back Zoom + Zoom - Block Traded | |
|
2026-09-10 15:22:47 JPMorgan used PSBC (01658.HK), the weakest-capitalized among state-owned banks, to gauge the potential room for raising payout ratios under a unified dividend policy for state-owned banks. If PSBC does not obtain regulatory approval to adopt the Internal Ratings-Based (IRB) approach for calculating risk-weighted assets, its payout ratio is unlikely to rise above the current 31%. If it switches to the IRB approach from 2027, assuming stable asset quality and structure, asset growth of 6-8%, and earnings growth of 3-5%, the payout ratio could rise to as high as 35%. Overall, while there is still room for further increases in payout ratios, this is not currently the base-case scenario because it depends on whether PSBC can adopt the IRB approach. JPM expected state-owned banks to achieve mid- to high-single-digit revenue growth over the next two years, along with stable to moderating loan growth. Relative to 10-year Chinese government bonds, the dividend yield spread of state-owned bank H-shares currently averages about 200 bps, while A-shares average about 224 bps, both close to their 10-year averages of 216 bps and 229 bps, respectively. Therefore, the broker viewed there is still room for further increases in payout ratios. The broker reiterated its Overweight ratings on all state-owned banks under its coverage, with BANK OF CHINA (03988.HK) and CCB (00939.HK) as its top picks. ~ AASTOCKS Financial News Website: www.aastocks.com | |