0617 GMT - China Merchants Bank's asset quality outlook remains challenging, says UOB Kay Hian analysts in a note. The Chinese lender's special mention loan ratio and overdue loan ratio both rose on quarter, they say. This suggests retail asset quality pressures have yet to peak amid the challenging macro environment, they add. "Against this backdrop, we expect credit costs to remain elevated as asset quality headwinds persist," the analysts add. They expect the bank's share price to be muted thanks to these asset-quality issues. UOB Kay Hian retains a hold rating and HK$49.00 target price on China Merchants Bank's Hong Kong-listed shares, which are up 0.55% at HK$47.36. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

May 04, 2026 02:17 ET (06:17 GMT)

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