A-Share Bank Stocks Rise 1.51% on July 28, CCB and ICBC Hit Record Highs
On July 28, A-share bank stocks rose 1.51% as measured by the Wind Bank Index, with 39 of 42 bank stocks gaining. The sector's total market capitalization reached RMB 14.6 trillion, up RMB 229 billion from the previous day. China Construction Bank and Industrial and Commercial Bank of China both hit record highs. The rally was driven by a shift toward defensive, high-dividend stocks amid market volatility. The rebound followed a weak first half and was supported by early interim reports from Bank of Chongqing and Chongqing Rural Commercial Bank showing profit growth.
On July 28, the A-share market opened low and moved lower throughout the day, with major indices falling broadly, but bank stocks performed well. The Wind Bank Index rose 1.51% for the day, with 39 of 42 bank stocks closing higher. The total market capitalization of the banking sector reached RMB 14.6 trillion, an increase of RMB 229 billion from the previous trading day, nearly returning to the level at the beginning of the year. Data show that since July, the total market cap of the banking sector has recovered by more than RMB 1.4 trillion.
China Construction Bank rose more than 3% intraday, hitting a record high of RMB 10.68 per share, with a total market cap exceeding RMB 2.1 trillion. Industrial and Commercial Bank of China closed up 3.1%, with a total market cap of RMB 2.7 trillion, narrowing the market cap gap with C Changxin from RMB 645.1 billion the previous trading day to RMB 441.2 billion, a reduction of about RMB 200 billion in a single day. Agricultural Bank of China closed up 3.57%, the largest gain, while Bank of Shanghai, Bank of Chongqing, and others also rose.
Looking back at the first half of this year, the banking sector continued to weaken, with total market cap once evaporating nearly RMB 1.5 trillion. The CITIC bank stock index fell 10.8% from the beginning of the year, while the Wind All-A Index rose 11.52% and the STAR Composite Index rose 54% over the same period. Affected by market trends and style, the proportion of bank holdings in fund portfolios declined significantly. According to fund holdings data at the end of the second quarter of 2026, the proportion of banks in active public fund holdings fell to the lowest level since 2019. Northbound capital continued to see small outflows, while southbound capital continued to favor Hong Kong-listed major banks.
Entering July, as the interim report disclosure period approached and some hard-tech stocks experienced their sharpest correction of the year, overall market risk appetite declined, and capital flowed back to dividend value and defensive sectors. Against this backdrop, the banking sector, with its low valuation and high dividend characteristics, became a direction for capital seeking certainty, and a valuation recovery rally ensued.
Before the formal release of interim reports, some banks had already released operating signals early. On the evening of July 20, Bank of Chongqing and Chongqing Rural Commercial Bank took the lead in releasing their 2026 semi-year performance previews, becoming the first A-share listed banks to disclose half-year operating data. The performance previews showed that in the first half of 2026, Bank of Chongqing achieved operating revenue of RMB 8.486 billion, up 10.8% year-on-year; net profit attributable to shareholders of the parent company was RMB 3.518 billion, up 10.28% year-on-year. Chongqing Rural Commercial Bank achieved operating revenue of RMB 15.892 billion, up 7.81% year-on-year; net profit attributable to shareholders of the parent company was RMB 8.168 billion, up 6.09% year-on-year. Both regional commercial banks achieved positive growth in revenue and net profit. On the same day, SPD Bank released its announcement on major operating conditions for the first half of 2026. As of the end of the first half, SPD Bank's total loans were RMB 5,868.251 billion, an increase of RMB 164.278 billion from the end of the previous year, up 2.88%; total deposits were RMB 5,864.101 billion, an increase of RMB 281.666 billion from the end of the previous year, up 5.05%.