ICBC

Hi Iggy, kudos and thanks for sharing your story 👏

You mentioned that buying into our local 3 banks didn't clear your own criteria + you didn't buy them for dividend income as well. Yet, you invested into all 3 as they rose higher and higher in the past year, so much so that the recent steep dips still have the banks being overvalued based on their P/B. My questions to you are as follows:

1. This is a perfect example where price is higher than theoretical valuation, but business fundamentals remain solid. When and what aspects allow you to make that conviction to break your own rules and say "yup, this is the one"?

2. Do you also invest in similarly positioned banking stocks (e.g. Hong Kong banks like ICBC, BoC etc)? If so, could you share your experience diversifying your assets in a slightly riskier economy where govt policies could potentially sway in any direction? If no, why not?

Cheers 😊

New stocks and HK stocks are all in the red 😇

Hong Kong stocks are in a sea of red, dizzying 😵

$ICBC(01398.HK)$CHINA LIFE(02628.HK)

🇨🇳 China Unleashes ¥360B Boost - What It Means for HK Markets 🇭🇰

China is pumping a massive ¥360 billion (~US$53.6 billion) to recapitalise eight top state-owned banks and insurers including ICBC, AgBank, and China Life.

Here’s the breakdown:

🏦 Stronger Financials

Replenishing Tier 1 capital for these heavyweight dual-listed H-shares eases margin pressure, stabilises valuations and secures those important dividend payouts.

📈 Institutional Support

With thicker capital buffers, state insurers can step in as market stabilizers. Look for them to deploy long-term funds into undervalued HK blue chips, lifting broader sentiment.

🛡️ Safer Macro Outlook

This backstop keeps credit flowing even amid soft domestic demand, directly tackling systemic risks.

A fortified banking system should help revive foreign investor confidence and bring capital back to Chinese assets.

👉 See the infographic for full details and market impact projections.