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<Research>HSBC Research: State-owned Banks May Outperform Joint-stock Banks This Quarter; ICBC/ CM BANK Preferred
Recommend 21 Positive 33 Negative 6 |
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The People's Bank of China (PBOC)'s 3Q25 urban household deposit survey shows a preference among residents for savings and investing over consumption, HSBC Global Research issued a research report saying. Respondents choosing 'more investments' increased by 5.6 ppts QoQ to 18.5%, partially reflecting an optimistic outlook on the capital market. Those opting for 'more consumption' decreased by 4.1 ppts to 19.2%, setting a historical new low. Respondents choosing 'more savings' accounted for 62.3%. These results partially align with the decline in the employment sentiment index for 3Q25. The survey results show significant correlation with banks' stock prices between 2017 and 2022, the report added. For instance, in 1Q17, a sharp rise in the loan demand index was followed by a sustained recovery in China's macroeconomy and banks' stock prices; in 2Q22, a significant decline in the loan demand index corresponded with subsequent market correction. The latest survey reinforces the view that state-owned banks may outperform joint-stock banks this quarter. The broker preferred ICBC (01398.HK) for its solid balance sheet and strong corporate banking franchise, and CM BANK (03968.HK) for its strong wealth management business and prudent risk management. AASTOCKS Financial News Website: www.aastocks.com |
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