0604 GMT - Margin pressure at China's largest state-owned banks could be easing, eToro market analyst Zavier Wong says in a note. Bank of China, Industrial & Commercial Bank of China, China Construction Bank and Agricultural Bank of China have indicated that funding costs could decline in 2H as deposit rates reset lower. "If that does happen, it could help stabilize net interest margins, which have been in decline for nearly two years", he adds. Fee-based income and trading activity have become more important profit drivers, reflecting a shift toward services from traditional spread-based lending for revenue, Wong notes. In 3Q, the focus will likely change to momentum from recovery at the beginning of the year, but profitability is unlikely to surge given selective credit demand, Wong says. (jason.chau@wsj.com)

(END) Dow Jones Newswires

October 29, 2025 02:05 ET (06:05 GMT)

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