Chinese bank stocks saw a rebound today. As of the latest update, HUISHANG BANK (03698) rose 4.49% to HK$3.49, CCB (00939) gained 2.99% to HK$7.93, BANK OF CHINA (03988) climbed 2.27% to HK$4.50, and ICBC (01398) increased 1.99% to HK$6.14.

The sector's recovery follows the release of Q3 2025 earnings reports, which showed stable revenue and improved net profit growth for listed banks. Xiangcai Securities noted that as deposit costs decline and net interest margin compression narrows, coupled with steady growth in fee-based income, the banking sector is showing signs of bottoming out and stabilizing.

Recent acceleration in policy-driven financial tools is expected to boost credit demand in Q4, with regional banks benefiting from the economic resilience of major provinces, supporting sustained asset expansion. As market investment preferences rebalance, the stable high dividends of bank stocks are attracting long-term capital inflows, reinforcing their absolute return potential.

CITIC Securities highlighted that Q3 earnings for listed banks indicate stable operations, with revenue and net profit attributable to shareholders growing 0.9% and 1.5% YoY, respectively (compared to 1.0% and 0.8% in H1). Net interest margins have stabilized, and asset quality remains sound, with full-year revenue and profit growth expected to improve further.

Despite last week's pullback after a rebound, CITIC Securities maintains that undervaluation still offers significant upside potential. With year-end approaching, long-term capital allocation is likely to drive bank stock performance, making it an opportune time for institutional investors to position for high-certainty returns.