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| HSI1 | 22,671.86 | -405.05 | 342.10B |
| HSCEI1 | 7,460.84 | -147.54 | 100.47B |
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2026-06-26 12:07:38 China’s National Audit Office reportedly indicated that BANK OF CHINA (03988.HK) underpaid taxes amounting to RMB2.367 billion, equivalent to about 1% of its net profit, Goldman Sachs in its report. The news led to a downfall of more than 5% in the H shares of BANK OF CHINA in the previous trading day. Investors are widely concerned about whether the incident will shore up the effective tax rate of Chinese-funded banks and tighten interbank liquidity. However, the broker believed that as the decline in effective tax rates of Chinese banks in recent years has mainly been driven by tax-exempt government bonds, the effective tax rates of major banks such as BANK OF CHINA are unlikely to leapfrog going forward. The broker maintained its stock selection framework. Amid slowing loan growth in the sector, it continued to prefer large banks that can sustain NIM and asset quality, strengthen balance sheets and deliver stable return on equity. Such picks included BANK OF CHINA, CCB (00939.HK), and BANK OF NINGBO (002142.SZ). Goldman Sachs rated the H shares of BANK OF CHINA and CCB, as well as BANK OF NINGBO, as Buy, with TPs of HKD5.95, HKD9.96 and RMB41.29, respectively. ~ AASTOCKS Financial News Website: www.aastocks.com | |