G Sachs published a research report saying that growth in China's banking sector remains challenging due to slowing credit growth, but it expects divergence in individual stock performance to continue in 2H, mainly driven by balance sheet resilience. Large banks remain the top picks, with preference for CCB (00939.HK) +0.020 (+0.244%) Short selling $270.83M; Ratio 37.087% and BANK OF CHINA (03988.HK) 0.000 (0.000%) Short selling $135.75M; Ratio 42.857% .

The broker maintained the Buy rating on CM BANK (03968.HK) 0.000 (0.000%) Short selling $49.49M; Ratio 34.143% , but lowered its 2026 and 2027 net profit forecasts by 2% each, mainly due to concerns over whether its asset quality can improve. G Sachs forecast average growth of 5% and 3% in pre-provision operating profit and net profit, respectively, for the banks under its coverage in 2Q, with large banks still outperforming other banks.

G Sachs made slight adjustments to TP on Chinese bank stocks as follows:

Stock | Investment Rating | TP (HKD)

ICBC (01398.HK) +0.010 (+0.147%) Short selling $105.12M; Ratio 45.062% | Neutral | HKD6.96 -> HKD6.92

BANK OF CHINA (03988.HK) 0.000 (0.000%) Short selling $135.75M; Ratio 42.857% | Buy | HKD5.95 -> HKD5.96

CCB (00939.HK) +0.020 (+0.244%) Short selling $270.83M; Ratio 37.087% | Buy | HKD9.96 -> HKD10.1

ABC (01288.HK) -0.020 (-0.361%) Short selling $38.66M; Ratio 39.801% | Neutral | HKD5.82 -> HKD5.81

BANKCOMM (03328.HK) -0.010 (-0.144%) Short selling $25.41M; Ratio 67.123% | Sell | HKD6.4 -> HKD6.39

PSBC (01658.HK) +0.020 (+0.418%) Short selling $16.12M; Ratio 53.667% | Buy | HKD5.75 -> HKD5.76

CM BANK (03968.HK) 0.000 (0.000%) Short selling $49.49M; Ratio 34.143% | Buy | HKD52.86 -> HKD52.49

(ad/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-15 12:25.)