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HSBC Global Research: CN Banks' 1Q Results Mildly Favorable; Top Picks ICBC, CCB

AASTOCKS ·  2022/05/03 22:50

Although Chinese banks' 1Q22 results came as a moderate positive, HSBC Global Research assumed more negative impacts from the Covid pandemic in 2Q22, which may weigh further on wealth management income, weaken retail consumption loan demand and worsen asset quality. Among big lenders, the broker preferred $ICBC(01398.HK)$  and $CCB(00939.HK)$ for their defensive nature.

$BANKCOMM(03328.HK)$  was removed from the top pick list, as its stock price has outperformed the market significantly YTD, alongside higher revenue and asset quality risks surrounding its Yangtze River Delta-oriented business.

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