Greater China Banks Daily: China banks & BOCHK‘s Q2 preview; Property developer loans down 8.5% YoY to Rmb12.65trn as of H126; Smaller banks cut self-managed WMP balance

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Greater China Banks Daily: China banks & BOCHK‘s Q2 preview; Property developer loans down 8.5% YoY to Rmb12.65trn as of H126; Smaller banks cut self-managed WMP balance

Global Research

29 July 2026ab

Greater China Banks Daily Equities

ChinaChina banks & BOCHK's Q2 preview; Property

developer loans down 8.5% YoY to Banks

Rmb12.65trn as of H126; Smaller banks cut self- MayAnalystYan

managed WMP balance may.yan@ubs.com+852-2971 7157

Alex Ye

Analyst

UBS China A-Share Conference 2026 and post-conference tour will take place this S1460522090005

September. Join us for a holistic and in-depth China macro tour in Shenzhen, alex.ye@ubs.com

+86 755 2215 8858

Dongguan and Beijing during 2-4 Sept (Wed-Fri), where we will meet financial

institutions and their local branches, property developers and agents, local SME owners, Catherine Yang, CFA

as well as regulators and think-tank experts to assess the latest economic and industry Analyst

S1460526010003dynamics. Please reach out to us if you would like to register.

catherine-za.yang@ubs.com

+86-755-2215 8860

China banks Q2 preview: will good revenue growth continue into Q2? Helen Li, CFA

AnalystChina banks will kick off the Q226 reporting season from Aug.14 (Figure 1). We expect

helen-za.li@ubs.com

the results to act as a positive catalyst, supported by stable NIM (largely flat QoQ) hence

+852-2971 6066

accelerated NII growth (+6.9% YoY), and decent revenue (+4.9% YoY) and steady net

profit growth (+2.6% YoY). That said, top-line growth may soften from Q1 for some

banks, mainly due to the high base of MTM and investment gains in Q225 one-off WM

fee income gains from off-B/S to on-B/S migration in 2Q25, albeit with diverging trends

across our coverage. Credit cost is expected to increase YoY for most banks (+6bps YoY)