Greater China Banks Daily: China banks: Buying quality growth; May retail growth reporting -0.6% YoY, first decline since Dec 2022

Research evidence excerpt

Greater China Banks Daily: China banks: Buying quality growth; May retail growth reporting -0.6% YoY, first decline since Dec 2022

Global Research

17 June 2026ab

Greater China Banks Daily Equities

ChinaChina banks: Buying quality growth; May retail

growth reporting -0.6% YoY, first decline since Banks

Dec 2022 MayAnalystYan

may.yan@ubs.com

+852-2971 7157

China banks: Buying quality growth Alex Ye

Analyst

We assume coverage of China regional banks with a tilt toward Buy ratings, preferring S1460522090005

names with fast NPAT growth and superior ROE potential, along with defensive alex.ye@ubs.com

dividend yields. We have Buy ratings on BOHZ, BOJS, BONJ, BONB, CQRCB-A/H and +86 755 2215 8858

CSRCB (up from Neutral), and Neutral ratings on BOCD, BOBJ, BOCS, BOSH and

Catherine Yang, CFA

Huishang Bank. While China’s overall TSF and loan growth continued to moderate to a Analyst

respective 7.7% and 5.5% YoY by May 2026, regional divergence remains clear, with S1460526010003

Sichuan, Jiangsu, Zhejiang and Chongqing still delivering high-single- to double-digit catherine-za.yang@ubs.com

loan growth. We view leading regional banks in those faster-growing provinces as key +86-755-2215 8860

beneficiaries of this macro tailwind. In addition, their relatively small sizes and scope for Helen Li, CFA

market share gains amid industry-wide consolidation may enable growth above that of Analyst

their underlying footprints. As they are supported by fewer LPR cuts in 2025 and deposit helen-za.li@ubs.com

repricing, we expect leading regional banks to deliver double-digit NII growth, +852-2971 6066

underpinning rapid NPAT growth of high-single to double digits in 2026. Our top picks

are BOHZ and BOJS (full note).

China’s May retail growth reporting -0.6% YoY, first decline since Dec 2022