Mainland bank stocks posted broad gains, with CM BANK (03968) rising 3.87% to HK$47.78, BCQ (01963) up 3.72% to HK$7.53, CITIC BANK (00998) climbing 3.23% to HK$7.04, CCB (00939) advancing 2.61% to HK$7.51, and BANK OF CHINA (03988) gaining 1.91% to HK$4.26 at the time of writing.

On the fundamental outlook, Cathay Haitong Securities noted that banking sector performance shows 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 for the full year, performance is expected to maintain a stable and positive trend. Additionally, from a marginal change perspective, the year-over-year decline in bank net interest margins is expected to continue narrowing, which should benefit performance.

Galaxy Securities believes that tariff uncertainties are intensifying global asset price volatility, creating demand for defensive allocations and presenting opportunities for bank investments. The banking sector offers stable dividends, and after a period of correction, the cost-effectiveness of dividend yields has improved, with dividend value expected to attract inflows from risk-averse funds.