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2026-10-26 18:14:08 BofA Securities issued a research report stating that mainland Chinese bank H shares have cumulatively risen 19.5% YTD, or 23.3% including dividends, with share prices of multiple large banks recently hitting new highs. The broker believes 3Q26 earnings remain resilient, but share price gains over the past three months have exceeded fundamentals. Sector dividend yield has also fallen to around 5%. Therefore, it has turned more cautious on near-term upside potential and downgraded BANKCOMM (03328.HK) and BANK OF CHINA (601988.SH) A shares from "Neutral" to "Underperform", while maintaining TP at HKD7.10 and RMB6.01 respectively. The broker noted that BANKCOMM (03328.HK) H shares have cumulatively risen 18.5% over the past three months, with a dividend yield of 4.9%, lower than ICBC (01398.HK) and CCB (00939.HK) at 5.0%-5.2%. Its P/E ratio of 6.8x is also higher than ICBC and CCB at 6.1x-6.3x. In addition, its retail non-performing loan formation ratio reached 78 bps in 1H26, the highest among peers, while unsecured retail asset quality still faces deterioration risks. BANK OF CHINA (601988.SH) A shares' dividend yield has fallen to only 3.4%, the lowest among major listed banks. The broker prefers ICBC (601398.SH) A shares, with a dividend yield of 3.9%, and CMB (600036.SH) A shares, with a dividend yield of 4.9%. Among large-cap H-share banks, the broker is more positive on ICBC and CCB, while being least positive on PSBC (01658.HK). It also continues to favor CITIC BANK (00998.HK) and Bank of Ningbo.(su/ad)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |