Bank of China International published a report indicating that as of December 10, the Hang Seng China Mainland Banks Index has risen by 32.7% this year, outperforming the Hang Seng Index's increase of 19.1%. Looking ahead to next year, considering that decision-makers may continue to introduce more MMF and fiscal policies, the fundamentals of the banking industry will remain robust, and it is believed that the Listed in Hong Kong banks index may continue to achieve positive returns.
The bank stated that as risk-free interest rates decline and geopolitical risks increase, investors will pay more attention to undervalued high-dividend Listed in Hong Kong bank stocks. In addition, the Ministry of Finance announced it will issue special government bonds to supplement the capital of large commercial Banks. It maintains an "Shareholding" rating for the banking industry. The top pick in the Sector is Agricultural Bank of China (01288.HK), and it recommends China Construction Bank (00939.HK), Industrial and Commercial Bank of China (01398.HK), China Merchants Bank (03968.HK), Postal Savings Bank of China (01658.HK), and Bank of Guangxi (06818.HK).