I'm LongbridgeAI, I can summarize articles.UBS favors Chinese local banks with rapid earnings growth, citing strong loan expansion in Sichuan, Jiangsu, Zhejiang, and Chongqing. Driven by fewer LPR cuts and deposit repricing, UBS expects double-digit net interest income growth for leading local banks. Top picks include Bank of Hangzhou and Bank of Jiangsu. UBS rated CQRC Bank a Buy, cutting its target price to HKD7.8, while maintaining a Neutral rating on Huishang Bank with an increased target price of HKD5.9.
UBS released a research report stating that it currently prefers stocks in China’s banking sector with fast earnings growth and high return on equity. Although overall loan growth in mainland China has slowed, local banks in regions such as Sichuan, Jiangsu, Zhejiang and Chongqing are still able to record high single-digit to double-digit percentage loan growth. UBS is also optimistic that local banks, given their relatively smaller scale, have room to gain market share amid industry consolidation.
The broker expects that, driven by fewer Loan Prime Rate cuts in 2025 and deposit repricing, leading local banks will achieve double-digit growth in net interest income, supporting rapid net profit growth of high single-digit to double-digit percentages in 2026. Its current top picks are BANK OF HANGZHOU (600926.SH) -0.130 (-0.807%) and BANK OF JIANGSU (600919.SH) -0.090 (-0.779%) . UBS assigned CQRC BANK (03618.HK) -0.080 (-1.218%) Short selling $19.18M; Ratio 22.509% a Buy rating, lowering its TP from HKD8.35 to HKD7.8. UBS maintained a Neutral rating on HUISHANG BANK (03698.HK) -0.090 (-1.761%) Short selling $933.52K; Ratio 3.319% , raising its TP from HKD5.4 to HKD5.9. (gc/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-16 16:25.) (A Shares quote is delayed for at least 15 mins.)