<div id="readability-page-1"><div>HSBC Research said in a report that China banks' first-quarter results beat expectations, driven by accelerating earnings growth, earlier-than-expected expansion in NIM, and solid growth in fee and other non-interest income. The broker noted that large state-owned banks delivered outstanding performance in terms of NIM, earnings growth and asset quality.The broker believes the results are positive for the sector. BANK OF CHINA (03988.HK) -0.120 (-2.317%) Short selling $392.01M; Ratio 29.748% , CCB (00939.HK) -0.210 (-2.336%) Short selling $1.17B; Ratio 31.007% , ICBC (01398.HK) -0.190 (-2.632%) Short selling $1.11B; Ratio 33.148% and ABC (01288.HK) -0.090 (-1.459%) Short selling $375.72M; Ratio 29.153% outperformed peers, while PSBC (01658.HK) -0.220 (-4.198%) Short selling $147.32M; Ratio 26.811% and CM BANK (03968.HK) -0.880 (-1.834%) Short selling $521.72M; Ratio 40.499% lagged behind.Quarterly trends confirmed the broker's view that corporate banking performed better than retail banking. Looking ahead, HSBC Research expects fundamentals of the China banking sector to further improve this year, driving a re-rating in P/E multiples and pre-provision operating profit margins.The broker's top picks are ICBC H-shares, CCB H-shares and CMB A-shares (600036.SH) -0.230 (-0.597%) . The first two are expected to benefit from their strong corporate banking franchise, while the latter has a solid customer franchise. All three stocks are rated Buy, with TPs of HKD8, HKD10.7 and RMB56.3 respectively. (ss/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-30 16:25.) (A Shares quote is delayed for at least 15 mins.)</div>This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation.</div>

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HSBC Research reported that China's banks exceeded first-quarter expectations, driven by strong earnings growth and improved net interest margins (NIM). Large state-owned banks showed exceptional performance, while corporate banking outperformed retail banking. HSBC anticipates further improvement in the sector's fundamentals this year, leading to a re-rating of P/E multiples. Top stock picks include ICBC H-shares, CCB H-shares, and CMB A-shares, all rated Buy with target prices of HKD8, HKD10.7, and RMB56.3 respectively.

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HSBC Research: China Banks 1Q Results Beat; Fundamentals Expected to Further Improve This Year