Bank of China stock gains as Daiwa starts coverage with positive rating

Published on 09/18/2026 at 12:29 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Bank of China stock receives a first-time positive rating from Daiwa as of September 18, 2026, signaling confidence that pressure on margins is easing. The shares trade close to their recent range on Hong Kong Exchange, reflecting cautious optimism among investors.

Bank of China, CNE1000001Z5, Illustration mit AI erstellt.

Bank of China stock (ISIN CNE1000001Z5) is drawing renewed attention after Daiwa initiated coverage of the lender with a positive recommendation as of September 18, 2026, signaling that the worst phase for net interest margins may be over for Chinese banks.

Daiwa’s fresh call on Bank of China

According to Futunn on September 18, 2026, Daiwa has initiated coverage of major Chinese bank stocks, including Bank of China shares, with a broadly positive outlook.

In its note, Daiwa argues that the most difficult period for Chinese banks’ net interest margins has likely passed, with pressure from rate cuts and competition easing compared with the prior year, and it sees scope for gradual stabilization in profitability, including for Bank of China.

Latest profitability trends and margin pressure

While the detailed figures for Bank of China’s most recent interim report are not fully set out in the Daiwa coverage summary, the broker’s view is based on a comparison between the margin compression seen in 2025 and a more stable pattern anticipated for 2026, suggesting that the decline in net interest margin has moderated compared with the previous reporting year.

For retail investors, this matters because even a modest improvement of a few basis points in net interest margin on a large loan book can translate into hundreds of millions of CNY in additional annual net interest income, especially when combined with steady fee and commission income.

Stock price holds its range on Hong Kong Exchange

Real time quote snapshots for Hong Kong financial stocks on September 18, 2026 show large bank shares trading broadly in line with the Hang Seng Index, which opened 0.49 percent higher and closed up 0.60 percent at 24,750.78 points, indicating a moderately supportive backdrop for Bank of China stock on its primary listing in Hong Kong as of that date.

Bank of China stock price and investor view

On Hong Kong Exchange as of September 18, 2026, Bank of China stock is trading close to the prior day’s closing level, with a small daily change in percent that keeps the shares within their established 52 week trading range; this range helps investors judge whether the stock is nearer to its historical high or low over the past year.