HK Stock Market Move | China Merchants Bank (03968) rose more than 4% in the afternoon. Ping An Asset Management's stake has reached 5%. The company is sensitive to demand stimulation and market sentiment.

China Merchants Bank (03968) rose over 4% in the afternoon, rising by 4.44% to HK$39.95 with a turnover of HK$826 million as of the time of writing. On the news front, according to the latest equity disclosure data from the HKEX, on January 7th, China Merchants Bank saw Ping An Asset Management increase its holdings by 2.93 million shares, involving about HK$112 million. After the increase, Ping An Asset Management's latest shareholding amount is 229,737,500 shares, and the shareholding ratio has increased from 4.94% to 5.00%. A report from J.P. Morgan stated that bank stocks are expected to outperform the broader market this year. They believe that the stable and high dividend yield of bank stocks, along with the widening dividend spread, will support the prices of bank stocks. The bank mentioned that their top pick in the domestic banking sector is China Merchants Bank, as it improves shareholder returns through special dividends or raising the dividend payout ratio, and is sensitive to domestic demand stimulation and capital market sentiment. They maintain an "overweight" rating on its H shares and have lowered their target price from HK$58 to HK$53.