The first-half performance of major Chinese banks is on a downward trajectory. In the capital markets, continued selling of bank stocks is fueling market anxiety.
According to China Securities Journal on the 29th, Bank of China, one of the five major local banks, announced that its net profit for the first half of this year was 118.6 billion yuan (approximately 22.32 trillion KRW), a 1.2% decrease compared to the same period last year.
Another major bank, China Merchants Bank, also saw its net profit decline by 1.33% during the same period, recording 74.7 billion yuan. Additionally, Zhengzhou Bank's first-half net profit sharply dropped by 22.12% to 1.594 billion yuan, while Minsheng Bank's net profit fell by 5.48% to 22.474 billion yuan compared to the previous year.
On the same day, banks such as Changsha Bank (4.121 billion yuan), Zhaoshang Bank (7.999 billion yuan), and Xi'an Bank (1.337 billion yuan) reported net profit increases of 4.01%, 3.31%, and 0.31%, respectively, compared to last year.
According to a report by China Securities Journal citing data from the National Financial Regulatory Administration, the net profit of Chinese commercial banks in the first half of this year was 1.2574 trillion yuan, marking only a 0.36% increase from last year. This growth rate is 0.3 percentage points lower than that of the first quarter.
The net profit of major banks was 626.8 billion yuan, showing a 2.87% decrease during the same period, indicating a faster decline compared to small and medium-sized banks.
In the capital markets, selling of bank stocks continues. According to China Securities Journal, major funds have sold bank stocks for seven consecutive trading days as of this date, with sales reaching 2.2 billion yuan in a single day on the 29th. Sales of over 300 million yuan were seen in Agricultural Bank of China and Industrial and Commercial Bank of China, while Communication Bank, Construction Bank, and Bank of China experienced sales of around 200 million yuan each.
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