China Banks Stage Comeback as Big Tech Crackdown Spurs Rally
Photographer: Qilai Shen/Bloomberg
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Chinese banking stocks, perennial under-performers with valuations hovering near record lows, may finally have some good news to cheer up investors.
China Merchants Bank Co., dubbed as China’s retail banking king, had its best ever start to the year with its shares rallying 24% Hong Kong, more than doubling the gain in the benchmark Hang Seng Index and leading other lenders higher. Analysts and investors expect the boom to continue, with China International Capital Corp. predicting a 60% upside potential for mainland banks’ Hong Kong-listed stocks in 2021.