--- title: "CICC: BANK OF CHINA Well Positioned to Address Current K-shaped Divergence, Maintains Outperform Rating" type: "News" locale: "en" url: "https://longbridge.com/en/news/294143333.md" description: "CICC maintains an Outperform rating on Bank of China, citing its strong positioning to address K-shaped divergence. The bank benefits from rising fiscal bond issuance and export settlements, a large base of high-quality domestic clients, and significant cross-border advantages through its extensive overseas network, particularly in Southeast Asia and Belt and Road countries. CICC keeps earnings forecasts unchanged with a HKD6.39 target price, implying 18.8% upside." datetime: "2026-07-29T02:57:01.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294143333.md) - [en](https://longbridge.com/en/news/294143333.md) - [zh-HK](https://longbridge.com/zh-HK/news/294143333.md) --- # CICC: BANK OF CHINA Well Positioned to Address Current K-shaped Divergence, Maintains Outperform Rating CICC issued a report saying that BANK OF CHINA (03988.HK) \-0.010 (-0.183%) Short selling $191.78M; Ratio 17.049% is well positioned to address the current K-shaped divergence backdrop. From the perspective of deposit creation channels, the weighting of fiscal bond issuance and export settlement and sales of foreign exchange has risen significantly over the past few years. The former reflects the trend of fiscal authorities and SOEs increasing leverage in the "low interest rate era", while the latter reflects stronger exports driven by the global competitiveness of advanced manufacturing and technology enterprises, as well as RMB appreciation and enhanced international competitiveness. In its domestic business, BANK OF CHINA (03988.HK) \-0.010 (-0.183%) Short selling $191.78M; Ratio 17.049% , as one of China's four major state-owned banks, has a large base of high-quality clients in the mainland, particularly institutional clients and central and state-owned enterprises. In terms of cross-border business, the broker believes BANK OF CHINA (03988.HK) \-0.010 (-0.183%) Short selling $191.78M; Ratio 17.049% possesses significant first-mover advantages and competitive barriers, including seizing opportunities in the era of globalization and becoming the Chinese-funded financial institution with the most comprehensive overseas branch network. The bank also leads peers in infrastructure and relevant qualifications for the global use of RMB, while its compliance and risk control capabilities have been honed through nearly a century of global operations. In particular, its presence in SE Asia and Belt and Road countries is better aligned with the regional characteristics of Chinese enterprises expanding overseas and the internationalization of RMB usage. Overall, its positioning enables it to effectively address the current K-shaped divergence. The broker maintained its earnings forecasts and valuation for BANK OF CHINA (03988.HK) \-0.010 (-0.183%) Short selling $191.78M; Ratio 17.049% unchanged, while keeping its H-share TP at HKD6.39. The valuation corresponds to 7.4x/7x 2026/2027 P/E and 0.6x/0.6x P/B, implying 18.8% upside from the current share price. The Outperform rating was maintained. (ha/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-28 16:25.) ### Related Stocks - [BACHY.US](https://longbridge.com/en/quote/BACHY.US.md) - [03988.HK](https://longbridge.com/en/quote/03988.HK.md) - [601988.CN](https://longbridge.com/en/quote/601988.CN.md) - [03908.HK](https://longbridge.com/en/quote/03908.HK.md) - [601995.CN](https://longbridge.com/en/quote/601995.CN.md) - [02388.HK](https://longbridge.com/en/quote/02388.HK.md) ## Related News & Research - [Radiance Holdings Intensifies Debt Restructuring to Address Going-Concern Warning](https://longbridge.com/en/news/294490416.md) - [Bank of China Boosts Capital With RMB30 Billion AT1 Bond Issuance](https://longbridge.com/en/news/293453677.md) - [Localiza closes BRL 5.64 billion unsecured debenture offering](https://longbridge.com/en/news/294395927.md) - [How Investors May Respond To JPMorgan Chase (JPM) Pairing Record Profit With Aggressive Long-Term Bond Issuance](https://longbridge.com/en/news/294590495.md) - [ROI-Iron ore giants BHP and Rio are morphing into copper plays: Russell](https://longbridge.com/en/news/294304924.md)