Citigroup published a research report indicating that next year is a significant year for capital raising by china mainland banking. Coupled with geopolitical risks and the unclear effects of fiscal stimulus policies, preference will be toward large banks with defensive high dividend yields next year.

Citigroup estimates that the capital dilution of the six major banks is a one-time event and that capitalization will not occur again in the foreseeable future. Since the Ministry of Finance relies on the dividends of these six banks to repay debts, a stable profit growth and dividend yield from the six major banks is anticipated. The bank stated that the preferred H shares for domestic banks are china construction bank corporation (00939.HK) and cqrc bank (03618.HK).