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Hong Kong-listed mainland Chinese bank stocks broadly rose, with ten banks distributing dividends exceeding RMB 90 billion this week; institutions are optimistic about the banking sector's performance in the third quarter.
Guosen Securities believes that in the second quarter, the SW Banking Index declined by 9.1%, with the core contradiction lying in market liquidity. The rally in technology and growth stocks accelerated and intensified, sharply boosting market risk appetite and driving capital toward high-upside technology sectors, leading to systematic underweighting of the banking sector.
Domestic bank stocks continued their downward trend, as the market reacted strongly to the National Audit Office's report; UBS Group indicated the financial impact on domestic banks is limited.
As of June 30, shares of China's major state-owned banks continued their downward trend. At the time of reporting, Agricultural Bank of China and ICBC had each fallen by more than 4%, Bank of Communications was down nearly 4%, and China Construction Bank had declined by over 3%.
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