Domestic bank stocks declined collectively. As of press release, Agricultural Bank (01288) fell 4.22% to HK$3.4; Bank of Communications (03328) fell 3.73% to HK$5.42; and Bank of China (03988) fell 2.29% to HK$3.42.
The Zhitong Finance App learned that domestic bank stocks were collectively lower. As of press release, Agricultural Bank (01288) fell 4.22% to HK$3.4; Bank of Communications (03328) fell 3.73% to HK$5.42; Bank of China (03988) fell 2.29% to HK$3.42; ICBC (01398) fell 2.52% to HK$4.26; China Merchants Bank (03968) fell 2.17% to HK$31.5.
According to the news, the semi-annual reports of the six major state-owned banks have all been disclosed, highlighting the overall pressure on the industry. In addition to the Agricultural Bank, which maintained both net revenue and profit growth, the revenue and net profit of the other five major banks declined in the first half of the year. Among them, ICBC saw the biggest year-on-year decline. The bank achieved net profit of 170.467 billion yuan in the first half of the year, a year-on-year decrease of 1.9%. Furthermore, in the first half of the year, net interest spreads of the six major banks fell collectively from the same period last year. With the exception of the Bank of Communications, the remaining 5 major banks all fell sharply compared to the same period last year. Among them, industry, agriculture, China, and construction all fell by more than 20 basis points year on year.
Furthermore, the recent rumor about a reduction in interest rates on stock mortgages has once again attracted great attention from the market. Wang Liang, Governor of China Merchants Bank, said at an interim results exchange meeting a few days ago that the bank has not received a notice from the supervisory authority to transfer personal stock loans to mortgages, and the supervisory authorities have not sought comments from commercial banks. This policy has yet to be officially confirmed. If this policy is implemented, it may adversely affect commercial banks' existing mortgages. CICC believes that assuming a reduction in interest rates on existing mortgages, although it suppresses bank stock price performance in the short term, it also means an early mitigation of medium-term risks.