A-share Bank Stocks Rise on July 28; Index Gains 1.51% as CCB, ICBC Hit Record Highs

On July 28, the A-share market opened lower and continued to decline throughout the day, with major indices falling collectively. However, 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 value 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 start of the year. Data show that since July, the total market value 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 total market value exceeding RMB 2.1 trillion. ICBC closed up 3.1%, with total market value reaching RMB 2.7 trillion. The market value gap between ICBC and C Changxin narrowed from RMB 645.1 billion the previous trading day to RMB 441.2 billion, shrinking by about RMB 200 billion in a single day. Agricultural Bank of China closed up 3.57%, the largest gain among major banks, while Bank of Shanghai and Bank of Chongqing also rose.

Reviewing the first half of the year, the banking sector continued to weaken, with total market value once evaporating by nearly RMB 1.5 trillion. The CITIC Bank Stock Index fell 10.8% from the start 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 conditions and style shifts, the proportion of bank holdings in fund portfolios declined significantly. According to fund holding data as of 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 maintained a preference for large Hong Kong-listed banks.

Entering July, with the arrival of the interim reporting season and a sharp correction in some hard-tech stocks—the most violent adjustment of the year—overall market risk appetite declined, and capital flowed back toward dividend value and defensive sectors. In this context, the banking sector, characterized by low valuations and high dividend yields, became a destination for capital seeking certainty, triggering a valuation recovery.

Ahead of the official interim reports, some banks had already released early operating signals. On the evening of July 20, Bank of Chongqing and Chongqing Rural Commercial Bank took the lead in publishing their 2026 semi-annual performance express reports, becoming the first A-share listed banks to disclose semi-annual operating data. The reports 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, and net profit attributable to shareholders of RMB 3.518 billion, up 10.28%. Chongqing Rural Commercial Bank achieved operating revenue of RMB 15.892 billion, up 7.81%, and net profit attributable to shareholders of RMB 8.168 billion, up 6.09%. Both regional commercial banks recorded 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 amounted to RMB 5,868.251 billion, an increase of RMB 164.278 billion from the end of the previous year, up 2.88%; total deposits reached RMB 5,864.101 billion, an increase of RMB 281.666 billion, up 5.05%.