I'm LongbridgeAI, I can summarize articles.JPMorgan expects moderate improvement in revenue and profit growth for Chinese banks in 1Q26. Agricultural Bank of China and Bank of Communications are anticipated to lead with stronger profit growth, while Postal Savings Bank may lag due to rising credit costs. Among joint-stock banks, Ping An Bank is likely to achieve positive growth, whereas China Minsheng Bank's profit growth may contract. JPM favors China Merchants Bank for its stable growth and attractive dividends. Overall, state-owned banks are expected to outperform joint-stock banks ahead of the dividend season in July.
JPM released a report stating that Chinas banking sector will gradually announce its results for 1Q26 over the coming week, with revenue and profit growth expected to show moderate improvement. Among large state-owned banks, the firm expects Agricultural Bank of China (01288.HK) +0.020 (+0.324%) Short selling $64.03M; Ratio 37.709% and Bank of Communications (03328.HK) +0.100 (+1.383%) Short selling $15.97M; Ratio 34.048% to demonstrate relatively stronger profit growth momentum, leading peers. In contrast, Postal Savings Bank of China (01658.HK) +0.070 (+1.351%) Short selling $19.26M; Ratio 29.888% may lag due to rising credit costs.
Among joint-stock banks, JPM indicated that Ping An Bank (000001.SZ) +0.020 (+0.182%) is likely to achieve a YoY turnaround to positive revenue and profit growth in the first quarter. Meanwhile, although China Minsheng Bank (01988.HK) +0.050 (+1.366%) Short selling $1.07M; Ratio 5.826% has shown signs of revenue rebound, its profit growth is expected to continue contracting. Industrial Bank Co., Ltd. (601166.SH) -0.020 (-0.110%) may deliver unsatisfactory revenue performance, but its profit growth is expected to remain stable, while China Everbright Bank (06818.HK) -0.020 (-0.627%) Short selling $540.58K; Ratio 5.091% could underperform peers overall.
Looking ahead, considering the upcoming dividend season in July, the firm believes state-owned banks will outperform joint-stock banks. Within the joint-stock banking space, it maintains China Merchants Bank (600036.SS) A-shares as its top sector pick, mainly supported by its stable financial growth trend and attractive dividend yield. (ha/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-23 12:25.) (A Shares quote is delayed for at least 15 mins.)
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