According to the Zhongtong Finance APP, Da Hua Ji Xian released a research report stating that among domestic banks, the first choice is cm bank (03968), indicating that even though cm bank has higher mortgage risks, the impact on its potential profitability is relatively lower than that of state-owned banks, mainly because of its higher contribution of net interest income, superior financial indicators (including roe, asset quality, and provisions buffer), and a dividend yield of 7.2%. Da Hua Ji Xian believes that cm bank has ample buffer capital to maintain its dividend levels. They give cm bank a 'buy' rating with a target price of 42 Hong Kong dollars.

The bank stated that the profit of domestic banks in the first half of this year roughly met expectations. The bank estimates that the cumulative reduction of 80 basis points in mortgage rates will have an impact of 6.5 basis points or 9.2% on the profits of domestic banks next year. The bank maintains a 'shareholding' rating for the industry. However, after a recent adjustment in stock prices, the valuation has been depressed, the dividend yield has risen, which may bring a glimmer of hope for defensive stocks. More policy support from regulatory institutions to safeguard the profit margins of domestic banks, such as lowering deposit interest rates and reserve requirements, may help alleviate investors' concerns about the fundamentals of domestic banks.