HK Stock Market Move | Most of the domestic banking stocks rose, with China Construction Bank Corporation (00939) and Industrial and Commercial Bank of China (01398) both up more than 2%.

Most domestic bank stocks are up, as of the time of writing, ZYBANK (01216) is up 4.55% at HK$0.345; CQRC BANK (03618) is up 4.35% at HK$6; China Construction Bank Corporation (00939) is up 2.57% at HK$7.98; Industrial and Commercial Bank of China (01398) is up 2.36% at HK$6.5; Agricultural Bank Of China (01288) is up 1.94% at HK$5.26. Galaxy Securities pointed out that the Central Political Bureau meeting set the tone for the "14th Five-Year Plan" and the starting point, with the macro policy orientation of seeking progress while maintaining stability and being proactive remaining unchanged, which is positive for bank operations and transformation. They are paying attention to the specific policy arrangements of the National Two Sessions. Passive capital outflows continue to converge, with the net profit growth rate of the banking industry continuing to recover by 2025. They are focusing on the low valuation window for bank stocks. In an environment of low interest rates and accelerated entry of medium to long-term funds into the market, the dividend attributes of high dividend yields and low valuations in the banking sector continue to have sustained attraction for long-term funds such as insurance capital, accelerating the restructuring of valuation pricing. Huatai believes that it is becoming increasingly difficult for market risk premiums to further recover, uncertainties remain in overseas markets, and high dividend stocks still have certain allocation value. They are focusing on cyclical dividends and potential dividends. The profit growth rate of commercial banks in Q4 of 2025 improved, with interest margins remaining flat; 12 banks including Nanjing, Ningbo, and Qingdao have released their 2025 annual reports, with 9 banks seeing revenue increases and 8 banks improving profits. It is expected that in 2026, performance will continue to improve under the contribution of stable interest margins and wealth management.