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China Construction Bank (939): delivered a stellar performance in the first quarter of this year. Benefiting from improved liability costs, its net interest margin (NIM) expanded strongly by 7 to 8 basis points quarter-on-quarter, leading the industry and directly driving a robust 8.1% year-on-year growth in net interest income. Looking ahead, with optimized deposit pricing, downward pressure on NIM has significantly decreased. CCB possesses strong defensive characteristics, boasting a high dividend yield of over 5% and a leading Tier 1 capital adequacy ratio, making it an excellent choice for investors seeking high certainty and stable dividends.
All 32 banks tested passed the Federal Reserve's annual stress test
All 32 banks tested passed the Federal Reserve's annual stress test, paving the way for dividend payments and share buybacks. In a simulated severe economic recession scenario, all 32 banks remained above the minimum capital requirements, collectively capable of withstanding over $708 billion in potential losses. The results of this stress test will not affect actual capital requirements, and the Federal Reserve has announced a freeze on related capital buffers until at least 2027. Several major Wall Street banks announced increased dividends and strengthened share buybacks after passing the stress test.
Hong Kong Stock Connect saw a net inflow of HK$15.751 billion on Wednesday, with the Tracker Fund of Hong Kong (02800) seeing the largest inflow at HK$6.175 billion, followed by Kingboard Holdings (00148). Alibaba-W (09988) recorded the largest net outflow at HK$948 million, followed by Hua Hong Grace Semiconductor (01347).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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