JPMorgan Sees Upside for China Bank Stocks on Margins, Fees

Chinese bank stocks are poised to rise in the second half, attracting dividend-seeking investors as the sector benefits from stabilizing net interest margins and growing fee income, according to a JPMorgan Chase & Co. analyst.

Mainland-listed A-shares could climb as much as 15%, while Hong Kong-listed H-shares may gain up to 8%, Katherine Lei, an analyst at the firm, estimated in a note. She projected an average dividend yield of about 4.3% this year for mainland-listed bank stocks under JPMorgan’s coverage.