HK Stock Market Move | Agricultural Bank Of China (01288) rises over 3% to a new high; Citi expects AgBank's Q3 results to beat expectations, mainly benefiting from the revaluation of its Changxin equity stake.

Agricultural Bank Of China (01288) rose over 3% in late trading, hitting a high of HK$6.77, a record high. As of press time, it was up 3.04% at HK$6.77, with a turnover of HK$827 million. Citi issued a research report stating that it has opened a 30-day positive catalyst watch on Agricultural Bank Of China, as its strong third-quarter results are expected to beat expectations, with profit growth expected to accelerate to about 10% year-on-year, implying a 6.8% year-on-year increase for the first three quarters, compared with 4.9% growth in the first half, the highest among large mainland banks. The bank said this is mainly due to fair value change gains from Changxin Memory, which are estimated to boost AgBank's revenue/profit by high single digits/low double-digit percentage points in the third quarter, respectively, coupled with loan growth remaining at a solid high single-digit year-on-year level; net interest margin stable quarter-on-quarter; and stable asset quality.