Jinwu Finance | Morgan Stanley's research reports indicate that before the bottom of the real estate and industrial cycle is confirmed in the second half of 2025, state-owned domestic bank H shares like Agricultural Bank Of China (01288) and China Construction Bank Corporation (00939) will be a safe choice as they provide about a 7% high dividend yield, due to the risky performance of growth stocks and low interest returns from mainland time deposits and debts.
The bank continued to indicate that Postal Savings Bank Of China (01658) offers a similar dividend yield while having greater growth potential with more cost savings and lower funding costs, thus it remains Morgan Stanley's top choice with a target price of HKD 5.3. Agricultural Bank Of China, China Construction Bank Corporation, Industrial And Commercial Bank Of China (01398), Bank Of China (03988), and CM BANK (03968) have target prices of HKD 4.4, HKD 7.1, HKD 5.6, HKD 4.6, and HKD 44.5 respectively, all rated as 'Shareholding'.
