HK Stock Market Move | State-owned banks continue to rise, high-dividend assets usher in a window of opportunity for allocation, with the four largest banks, Industrial and Commercial Bank of China (ICBC), Agriculture Bank of China (ABC), Bank of China (BOC), and China Construction Bank (CCB), all reaching record highs.

In the stock market, the trend of domestic banking stocks continued to rise. As of the time of writing, Agricultural Bank Of China (01288) increased by 3.02% to HK$4.43, BANKCOMM (03328) increased by 2.77% to HK$6.31, Bank Of China (03988) increased by 2.06% to HK$3.97, Industrial and Commercial Bank of China (01398) increased by 1.57% to HK$5.16, and China Construction Bank Corporation (00939) increased by 1.25% to HK$6.48. In terms of news, as of December 20, out of the 42 listed banks in A shares, 22 have announced their mid-term profit distribution plans for 2024, with a total proposed dividend payment exceeding 250 billion yuan. Data also shows that 23 listed banks have received increased holdings from important shareholders this year. CITIC SEC believes that after the important meetings in December, the market's policy game has come to a conclusion. Under the framework of asset allocation of the renminbi as a major category, bank stocks will still be a direction with strong certainty. As the year-end and the beginning of the year approach, it is expected that the banking varieties with high dividends, low volatility, and stable operations will still be the direction for insurance funds to increase allocation. GF SEC stated that after the "9.24 new policy", retail demand has marginally improved, mortgage lending has increased, and early repayment amounts have decreased. With the proactive fiscal policy landing next year, retail risks may improve, and some joint-stock banks and regional banks have observed stable risk trends in the third quarter. In the near future, dividends are still an important driving factor for individual stock price increases. It is expected that the banking sector will perform in line with the market during the high dividend allocation window from the end of the year to January next year.