Jingu Finance News | The research report of China CITIC Bank Corporation International indicates that the valuation of China mainland banking stocks has been revalued under the market sentiment driven by stimulus policies.

The bank expects that China mainland banking stocks will deliver stable operational performance in the third quarter of 2024, benefiting from higher trading income and lower impairment losses. It is predicted that Industrial Bank's profit growth will reach 3%, followed by Agricultural Bank of China (01288), Bank of Communications (03328), and China Citic Bank Corporation (00998). In addition, the bank predicts that the net interest margin in the third quarter will drop by 15 basis points year-on-year to 151 basis points. The bank continues to prefer state-owned banks, especially Agricultural Bank of China and Bank of China (03988).

The bank raised the target price for China mainland banking stocks, increasing Agricultural Bank of China's target price from HKD 4.2 to HKD 4.4, raising Bank of China's target price from HKD 4.1 to HKD 4.4; increasing Bank of Communications' target price from HKD 6.3 to HKD 6.6; raising Postal Savings Bank of China (01658)'s target price from HKD 4.8 to HKD 5.5; raising CM Bank (03968)'s target price from HKD 41 to HKD 46; increasing China Citic Bank Corporation's target price from HKD 5.1 to HKD 6. H shares all maintain an "outperform the market" rating.