On July 2, Guolonghui reported that UBS maintained a "neutral" rating on Bank of Communications (3328.HK) and raised its target price from HKD 4.7 to HKD 5.95. The bank said that the performance of the first quarter of the bank was better than expected, and its valuation has rebounded to a level roughly in line with that of state-owned peers (with a market-to-book ratio of 0.43 times in 2024, while the average market-to-book ratio of the four largest state-owned banks is 0.43 times). Although UBS has slightly adjusted its forecast, it remains cautious about Bank of Communications, but concerns about the following factors have been reduced: 1) growth of net interest income and stable net interest margin compared to peers; 2) Concerns about the default risk of real estate and local government financing platforms (LGFV) have eased with the introduction of stronger and more powerful policies.