HK Stock Market Move | Internal bank stocks bucked the market trend and rose, with CITIC BANK (00998) rising 3% during trading. Under the stable growth policy, bank valuations are expected to be repaired.

In the face of the market downturn, Chinese bank stocks have risen. As of the time of writing, JIANGXI BANK (01916) was up 4% at HK$0.78, CITIC BANK (00998) rose 2.53% to HK$6.49, Agricultural Bank Of China (01288) increased by 2.26% to HK$4.97, and Industrial and Commercial Bank of China (01398) rose 0.91% to HK$5.55. On the news front, the People's Bank of China announced on May 7 a package of financial policy measures, including a 0.5 percentage point reduction in the reserve requirement ratio, a 0.1 percentage point cut in the policy rate, and other measures. China Securities Co., Ltd. Securities stated that they expect this round of financial policy efforts to further boost economic recovery, leading to substantial improvement in the fundamental situation of banks. Open Source Securities stated that within the context of tariff disturbances, policy stability is key and there is still room for reserve requirement ratio cuts and interest rate reductions. They are optimistic about the valuation restoration of banks under the stable growth policy. It is expected that the performance of the banking industry will be relatively stable in 2025, with revenue and net profit growth steadily increasing. They continue to believe in the sustainability of stable dividend strategies.