HK Stock Market Move | Today, bank stocks rebounded. The third quarter financial performance of banks showed signs of stabilizing at the bottom, entering a period of favorable sector for long-term capital allocation at the end of the year.

Today, domestic bank stocks rebounded. As of the time of writing, Huishang Bank (03698) rose by 4.49% to HKD 3.49; China Construction Bank Corporation (00939) rose by 2.99% to HKD 7.93; Bank of China (03988) rose by 2.27% to HKD 4.5; Industrial and Commercial Bank of China (01398) rose by 1.99% to HKD 6.14. On the news front, the third quarter reports of banks in 2025 were released, with listed banks showing relatively stable revenue and an increase in net profit growth. Xiangcai Securities released a research report stating that with the decline in deposit costs and the narrowing of interest rate spreads, and steady growth in intermediary business income, the bank's performance is showing a bottoming out and stabilizing trend. Recently, policy financial instruments have been put into operation quickly, which is expected to boost bank credit demand in the fourth quarter. Regional banks benefit from the demonstration effect of major economic provinces, and asset expansion is expected to remain resilient. As the market investment style is rebalancing, bank stocks with stable high dividends attract configuration-oriented funds, and the absolute investment value of bank stocks is promising. CITIC SEC released a research report stating that the third quarter financial reports of listed banks in 2025 show a stable operating pattern, with revenue and net profit attributable to the parent company increasing by 0.9% and 1.5% year-on-year respectively (compared to 1.0% and 0.8% in the first half of the year), with interest rate spreads stable and asset quality remaining stable. It is expected that the improvement in revenue and profit growth rate will continue throughout the year. Although bank stocks rebounded last week and then retraced, CITIC SEC believes that the significant value space implied by low valuations still exists. Entering the long-term capital allocation period at the end of the year is conducive to catalyzing the market performance of bank stocks, and institutional investors are advised to actively position themselves to achieve high certainty returns.