Chinese banking stocks saw a collective rebound. At the time of writing, Guangzhou Rural Commercial Bank (GRCB) rose 4.64% to HKD 1.58. Bank of Communications (BANKCOMM) increased 2.69% to HKD 7.26. China Zheshang Bank (CZBANK) was up 2.1% to HKD 2.43. China Merchants Bank (CM BANK) gained 2.05% to HKD 46.86.

The positive movement is linked to recent developments regarding Changxin Xinqiao. The STAR Market listing committee reviewed and approved the company's initial public offering application on May 27. Reports indicate that five major state-owned banks have invested in Changxin Xinqiao through their asset investment companies and financial investment vehicles. Additionally, China Merchants Bank, Shanghai Pudong Development Bank, and Huishang Bank indirectly hold stakes in the company.

According to analysis, the combined indirect shareholding of these banks in Changxin Xiqiao is approximately 4.5%. If the company achieves a total market capitalization of 3 trillion yuan post-listing, even after accounting for dilution from potential share issuance, these banks are expected to realize substantial valuation gains. Among them, China Construction Bank is projected to see the highest gain, estimated at 41 billion yuan, equivalent to 12.09% of its 2025 net profit attributable to shareholders.

Furthermore, the five major state-owned banks also hold a 0.61% stake in Yangtze Memory Technologies Co., Ltd. through their respective asset investment companies. A successful future listing of this company could similarly bring significant valuation benefits to these banks.