Another “Elephant” Dances As China Construction Bank Hits A Record High While The Sector Remains Below Book Value, With Several Names Offering Elevated Dividend Yields

April 21 — The banking sector traded actively today, closing with its sector index up approximately 0.37% and ranking seventh among 31 Shenwan primary industry groups. Individual stocks including Qingdao Bank, Bank of Nanjing, and Bank of Zhangjiagang posted notable gains, and both China Construction Bank and Hangzhou Bank reached intraday record highs.

As the third‑largest A‑share by market capitalization, China Construction Bank’s share price movements attract sustained investor attention. After two consecutive trading days of upward momentum this week, the stock climbed intraday to RMB 9.95, approaching the RMB 10 mark and surpassing its prior high of RMB 9.82 recorded on July 11, 2025, thereby establishing a new price record.

On the funding side, margin financing has shown signs of returning to China Construction Bank. As of April 20, the financing balance stood at RMB 1.217 billion, up RMB 129 million from the recent low of RMB 1.088 billion on April 13, representing an increase of about 11.9%. Notably, on April 16 margin investors added roughly RMB 87.85 million in net purchases—the largest single‑day net buy since March—while net daily purchases on April 14, 15 and 20 each exceeded RMB 10 million.

Hangzhou Bank likewise set a fresh intraday high, rising to RMB 17.57 before settling at RMB 17.38, which places it fifth within the banking cohort behind China Merchants Bank, Ningbo Bank, Industrial Bank, and Bank of Chengdu. From a financing perspective, Contemporary Amperex Technology Co. Limited (CATL) showed relatively stable margin balances recently, reporting RMB 2.122 billion and ranking ninth among the banking‑related list, marginally above China Construction Bank.

Year‑to‑date the banking sector has underperformed, with the Shenwan primary sector index down nearly 2.5% as of today’s close, lagging the Shanghai Composite’s 2.9% gain and trailing the market’s average year‑to‑date increase of 7.4% and median rise of 0.5%. On an individual basis, Qingdao Bank, Chongqing Rural Commercial Bank, Ningbo Bank, Hangzhou Bank, Jiangsu Bank, and Qilu Bank have each advanced more than 10% this year, while Shanghai Pudong Development Bank has registered the most pronounced decline at 21.9%.

Price‑to‑book metrics indicate that all listed banks are trading below book value at present. Ningbo Bank, Hangzhou Bank, China Merchants Bank, and Agricultural Bank of China maintain relatively higher price‑to‑book ratios, each above 0.9, whereas China Minsheng Bank, Guiyang Bank, Huaxia Bank, Zhengzhou Bank, and China Everbright Bank are trading at price‑to‑book multiples below 0.4. On an aggregate basis, the CSI Banking Index records a price‑to‑book ratio of 0.69, positioned at the 42.03rd percentile over the past decade.

Dividend yields across the sector remain notable. The CSI Banking Index currently offers a dividend yield of 4.35%, at the 43.51st percentile of the last ten years. Fifteen banking stocks now yield in excess of 5%, with Industrial Bank, China Merchants Bank, Bank of Zhangjiagang, Changsha Bank, and Jiangyin Bank among the highest, delivering yields of 8.82%, 7.52%, 6.48%, 6.42%, and 6.38% respectively. China Everbright Bank, Wuxi Bank, Huaxia Bank, Ping An Bank, and Bank of Shanghai also rank prominently in terms of dividend income.