HK-listed Chinese banks deliver 23% higher returns in 8M 2024

Major banks’ plans to distribute interim dividends lifted market sentiment.

Major Chinese banks listed in Hong Kong posted a 23% total return and a 7.5% dividend yield the first eight months of 2024, according to data from the Hang Seng Indexes. 

The Hang Seng SCHK Mainland China Banks Index (‘HSSCBI’) posted a total return as high as 23% during the period, outperforming the broader market, official data showed.

This is due to investors’ continuing preference for both state-owned enterprises and dividend stocks.

Major banks’ plans to distribute interim divided further lifted sentiment over the past few months.

The HSSCBI– which reflects the performance of mainland banks listed in Hong Kong– has widened the performance gap between the index and the broader market to almost 50 percentage points (ppt) in a three-year period, as of 30 August 2024.

As of end-August, all but one bank– Minsheng Bank– constituting the HSSCBI are state-owned enterprises (SOE). SOEs made up 91% of the index’s weighing.