Some Chinese bank stocks declined in the afternoon session. As of press time, Bank of Communications (03328) fell 3.93% to HK$6.84, Agricultural Bank of China (01288) dropped 2.52% to HK$5.41, China Construction Bank (00939) slipped 0.79% to HK$7.58, and Industrial and Commercial Bank of China (01398) edged down 0.33% to HK$6.12.

Changjiang Securities noted in a research report that the initial rise and recent adjustments in bank stocks during Q4 primarily reflect fluctuations in year-end trading capital allocation. The bank expects these movements to reflect shifts in market risk appetite around quarter-end, with funds classified under TPL accounts. Insurance institutions and other entities may also have year-end profit-taking needs.

The report suggests that after the year-end transition period, allocation-driven demand is likely to push up bank stock valuations and the scale of bank index funds.

Changjiang Securities pointed out that the "Big Four" state-owned banks have recently completed interim dividend ex-dates. Historically, stock prices often adjust post-ex-date, as seen during the interim dividend period in early 2025. This year, the ex-dates for these banks were moved forward to December.

Other major banks, including Bank of Communications, Postal Savings Bank, China Merchants Bank, and Industrial Bank, are expected to implement interim dividend ex-dates around year-end, early next year, or before the Lunar New Year. From a long-term perspective, price adjustments caused by trading factors like ex-dividends may present favorable entry points for long-term investors.