CM BANK (03968) saw its stock price surge 5.00% during Tuesday's trading session, outperforming the broader rally in mainland bank stocks. The significant uptick comes as investors show renewed interest in the banking sector, driven by positive fundamental outlooks and attractive dividend yields.

According to Cathay Haitong Securities, the banking sector's performance has been showing relatively small fluctuations, with profits maintaining steady positive growth. Listed banks achieved a 0.8% profit growth rate in the first half of 2025, and the full-year performance is expected to continue this stable and positive trend. Analysts also note that the year-over-year decline in bank net interest margins is anticipated to narrow further, which should benefit overall sector performance.

Galaxy Securities highlights that amid intensifying global asset price volatility due to tariff uncertainties, bank stocks are becoming increasingly attractive for defensive allocations. The banking sector's stable dividends, combined with recent price corrections, have improved the cost-effectiveness of dividend yields. This enhanced dividend value is expected to attract inflows from risk-averse funds, potentially supporting further price appreciation in the sector.