Chinese banks' 1Q26 results beat expectations, driven by accelerated earnings growth, earlier-than-expected expansion in net interest margin (NIM) and solid growth in fee and other non-interest income, HSBC Global Research issued a research report saying. The broker believed that large state-owned banks delivered outstanding performance in terms of NIM, earnings growth and asset quality.Related NewsSummary of Latest Ratings, TPs and Views on CM BANK (03968.HK) from Major BrokersHSBC Global Research believed that the results are positive for the sector. BANK OF CHINA (03988.HK) -0.120 (-2.317%) Short selling $392.01M; Ratio 29.748% , CCB (00939.HK) -0.210 (-2.336%) Short selling $1.17B; Ratio 31.007% , ICBC (01398.HK) -0.190 (-2.632%) Short selling $1.11B; Ratio 33.148% and ABC (01288.HK) -0.090 (-1.459%) Short selling $375.72M; Ratio 29.153% outperformed peers, while PSBC (01658.HK) -0.220 (-4.198%) Short selling $147.32M; Ratio 26.811% and CM BANK (03968.HK) -0.880 (-1.834%) Short selling $521.72M; Ratio 40.499% lagged behind.Looking ahead, the broker anticipated fundamentals of the China banking sector to further improve this year, driving a re-rating in PE ratio and pre-provision operating profit (PPOP) margin.HSBC Global Research's most preferred stocks are ICBC's H-shares, CCB's H-shares and CMB (600036.SH) -0.230 (-0.597%) 's A-shares. The first two are expected to benefit from their strong corporate banking franchise, while the latter has a strong customer franchise. The above three stocks are rated at Buy, with target prices of $8/ $10.7/ RMB56.3, respectively. (HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-30 16:25.) (A Shares quote is delayed for at least 15 mins.)Related NewsUBS: CCB (00939.HK) 1Q26 Net Profit Beats Expectations, Rated Buy
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