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Hong Kong (HSI) Financials Sector Analysis

UpdatedJan 10, 2026
DataAggregated Company Financials
Companies185
  • 7D-1.3%
  • 3M5.8%
  • 1Y36.5%
  • YTD-1.3%

Over the last 7 days, the Financials industry has dropped 1.3%, driven by Agricultural Bank of China declining 5.1%. Meanwhile, China Life Insurance actually outperformed within the industry, gaining 9.2% in the last week. Over the past 12 months, the industry was up 36%. As for the next few years, earnings are expected to grow by 2.6% per annum.

Sector Valuation and Performance

Has the Hong Kong Financials Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 10 Jan 2026HK$17.0tHK$6.3tHK$2.1t9.7x8.1x2.7x
Mon, 08 Dec 2025HK$17.1tHK$6.2tHK$2.1t9.6x8.3x2.8x
Wed, 05 Nov 2025HK$17.3tHK$6.2tHK$2.1t10.5x8.4x2.8x
Fri, 03 Oct 2025HK$16.3tHK$6.2tHK$2.0t10.9x8x2.6x
Sun, 31 Aug 2025HK$16.9tHK$6.2tHK$2.0t12x8.4x2.7x
Tue, 29 Jul 2025HK$16.8tHK$6.1tHK$2.0t12.5x8.4x2.8x
Thu, 26 Jun 2025HK$16.6tHK$6.1tHK$2.0t10.1x8.2x2.7x
Sat, 24 May 2025HK$14.6tHK$6.1tHK$2.0t9.4x7.3x2.4x
Mon, 21 Apr 2025HK$13.8tHK$5.9tHK$2.0t8.1x7.1x2.3x
Wed, 19 Mar 2025HK$14.1tHK$6.5tHK$1.9t9.8x7.4x2.2x
Fri, 14 Feb 2025HK$13.5tHK$6.4tHK$1.9t9.2x7.2x2.1x
Sun, 12 Jan 2025HK$12.8tHK$6.3tHK$1.9t9.1x6.8x2x
Tue, 10 Dec 2024HK$13.2tHK$6.4tHK$1.9t10.1x7x2.1x
Thu, 07 Nov 2024HK$13.1tHK$6.4tHK$1.9t10x6.9x2x
Sat, 05 Oct 2024HK$13.7tHK$6.4tHK$1.8t11.5x7.5x2.1x
Mon, 02 Sep 2024HK$11.9tHK$6.3tHK$1.8t7.6x6.4x1.9x
Wed, 31 Jul 2024HK$11.7tHK$6.2tHK$1.8t7.8x6.6x1.9x
Fri, 28 Jun 2024HK$11.7tHK$6.2tHK$1.8t7.4x6.6x1.9x
Sun, 26 May 2024HK$11.9tHK$6.2tHK$1.8t8x6.7x1.9x
Tue, 23 Apr 2024HK$11.2tHK$6.3tHK$1.8t7.2x6.2x1.8x
Thu, 21 Mar 2024HK$10.9tHK$7.0tHK$1.8t7x6x1.6x
Sat, 17 Feb 2024HK$10.9tHK$6.8tHK$1.7t7x6.3x1.6x
Mon, 15 Jan 2024HK$11.1tHK$8.4tHK$1.9t7.1x5.9x1.3x
Wed, 13 Dec 2023HK$11.1tHK$8.6tHK$1.9t6.9x6x1.3x
Fri, 10 Nov 2023HK$11.4tHK$8.5tHK$1.8t7.3x6.2x1.3x
Sun, 08 Oct 2023HK$11.6tHK$8.5tHK$1.8t7.4x6.3x1.4x
Tue, 05 Sep 2023HK$11.8tHK$8.6tHK$1.8t7.4x6.4x1.4x
Thu, 03 Aug 2023HK$12.0tHK$8.3tHK$1.9t7.7x6.5x1.4x
Sat, 01 Jul 2023HK$12.2tHK$8.3tHK$1.8t7.9x6.6x1.5x
Mon, 29 May 2023HK$12.5tHK$8.5tHK$1.9t7.8x6.6x1.5x
Wed, 26 Apr 2023HK$12.7tHK$8.5tHK$1.9t8.4x6.7x1.5x
Fri, 24 Mar 2023HK$12.3tHK$8.7tHK$2.0t7x6.3x1.4x
Sun, 19 Feb 2023HK$12.1tHK$8.7tHK$2.0t7x6.1x1.4x
Tue, 17 Jan 2023HK$12.7tHK$8.8tHK$2.0t7.1x6.3x1.4x
Price to Earnings Ratio

6.3x


Total Market Cap: HK$12.7tTotal Earnings: HK$2.0tTotal Revenue: HK$8.8tTotal Market Cap vs Earnings and Revenue0%0%0%
Hong Kong Financials Sector Price to Earnings3Y Average 6.9x202420252026
Current Industry PE
  • Investors are optimistic on the Hong Kong Financials industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 8.1x which is higher than its 3-year average PE of 6.9x.
  • The 3-year average PS ratio of 1.9x is lower than the industry's current PS ratio of 2.7x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have declined 11% per year.
  • This means that the cost of doing business could be reducing since sales have declined but profits have remained steady.

Industry Trends

Which industries have driven the changes within the Hong Kong Financials sector?

HK Market-0.093%
Financials-1.33%
Insurance4.74%
Capital Markets3.78%
Mortgage Finance0%0
Diversified Financial-1.35%
Consumer Finance-1.81%
Banks-3.44%
Industry PE
  • Investors are most optimistic about the Capital Markets industry even though it's trading below its 3-year average PE ratio of 29.3x.
    • Analysts are expecting annual earnings growth of 10.1%, which is lower than the prior year's growth of 96.4% per year.
  • Investors are most pessimistic about the Banks industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 5.6x.
Forecasted Growth
  • Analysts are most optimistic on the Capital Markets industry, expecting annual earnings growth of 10% over the next 5 years.
  • However this is lower than its past earnings growth rate of 96% per year.
  • In contrast, the Insurance industry is expected to see its earnings decline by 7.2% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
2628 China Life InsuranceHK$31.489.2%
+HK$74.6b		140.3%PE4.7x
388 Hong Kong Exchanges and ClearingHK$426.802.6%
+HK$13.9b		52.6%PE31.4x
1339 People's Insurance Company (Group) of ChinaHK$7.284.0%
+HK$12.4b		102.8%PE5.5x
3908 China International CapitalHK$22.5411.7%
+HK$11.4b		91.0%PE11.2x
1299 AIA GroupHK$84.301.2%
+HK$10.5b		60.3%PE18.7x

Latest News

1398
HK$6.13
Industrial and Commercial Bank of China
7D
-3.3%
1Y
25.9%

1398: Higher Revenue Assumptions Will Still Pressure Margins And Share Performance

Analysts have slightly lifted their price target for Industrial and Commercial Bank of China, reflecting updated assumptions for fair value, discount rate, revenue growth, profit margin, and forward P/E that they see as better aligned with the bank’s current outlook. What's in the News A board meeting is scheduled for Dec 23, 2025, to review the bank's green finance implementation over the past two years, compliance management regulations, and proposed remuneration plans for directors and senior management for 2024 (Key Developments).
2388
HK$38.56
BOC Hong Kong (Holdings)
7D
-4.2%
1Y
57.7%

2388: New Connected Transaction Caps And Agreement Will Raise Governance Risk

Analysts have lifted their price target for BOC Hong Kong (Holdings), with fair value now estimated at HK$32.53 compared with HK$28.64 previously, citing updated assumptions for revenue growth, profit margins, the discount rate and future P/E. What's in the News Company flagged that new caps for Investment and Referral Connected Transactions and Inter-bank Connected Transactions each reach 5% or more under Listing Rule 14.07, so they fall under non exempt continuing connected transactions and require reporting, annual review, announcement and independent shareholders' approval (Key Developments).
3988
HK$4.39
Bank of China
7D
-3.1%
1Y
13.1%

3988: Future P/E Repricing Will Support Upgraded Fair Value Estimate

Analysts have lifted their fair value estimate for Bank of China from US$5.93 to US$6.34, reflecting updated assumptions around discount rates, revenue growth, profit margins, and an expected future P/E of about 11.3x. What's in the News A board meeting is scheduled for December 19, 2025, to review the information disclosure policy; rules on securities transactions by directors and senior management; routine connected transactions with China CITIC Financial Asset Management entities; matters related to International Holdings Limited under Shanghai Stock Exchange rules; and remuneration plans for executive directors and senior management for 2024 (Key Developments).
939
HK$7.59
China Construction Bank
7D
-2.7%
1Y
28.4%

939: Interim Profit Distribution And Debt Issuance Will Support Future Upside

Analysts have adjusted their price expectations for China Construction Bank slightly lower to reflect updated fair value, discount rate, and P/E inputs. This has led to a modest trim in the overall target that aligns with small changes in profit margin assumptions.
3618
HK$5.98
Chongqing Rural Commercial Bank
7D
-3.9%
1Y
32.6%
1339
HK$7.28
People's Insurance Company (Group) of China
7D
4.0%
1Y
102.8%

1339: Future Dividend Payouts And Margin Outlook Will Support Re Rating

Narrative Update on People's Insurance Company (Group) of China Analysts have lifted their price target range on People's Insurance Company (Group) of China by what they frame as a modest premium in currency terms, citing updated views on fair value, a slightly adjusted discount rate, revised revenue growth expectations, stronger profit margin assumptions and a higher future P/E input in their models. What's in the News Shareholders approved the 2025 interim profit distribution at the extraordinary general meeting on 30 October 2025, with an interim dividend of RMB 0.75 per 10 shares, totaling RMB 3.317b for the half year ended 30 June 2025 (Key Developments).
9636
HK$59.35
JF SmartInvest Holdings
7D
18.9%
1Y
179.3%
3908
HK$22.54
China International Capital
7D
11.7%
1Y
91.0%
2628
HK$31.48
China Life Insurance
7D
9.2%
1Y
140.3%
966
HK$21.00
China Taiping Insurance Holdings
7D
8.8%
1Y
97.7%
3328
HK$6.42
Bank of Communications
7D
-2.1%
1Y
4.6%
1299
HK$84.30
AIA Group
7D
1.2%
1Y
60.3%

1299: Stable Margins And Higher P/E Multiple Will Support Future Upside

Analysts have nudged their fair value estimate for AIA Group up from HK$95.32 to HK$96.13, citing updated assumptions on long term profitability and P/E multiples, while keeping revenue growth and the discount rate broadly unchanged. Valuation Changes The Fair Value Estimate is now set at HK$96.13, compared with the earlier HK$95.32, reflecting a small upward adjustment in the model output.
1288
HK$5.53
Agricultural Bank of China
7D
-5.1%
1Y
31.4%

1288: Dividend Plans And Governance Reviews Will Shape Balanced 2025 Outlook

Analysts have nudged their price target on Agricultural Bank of China slightly higher to reflect a fair value of ¥6.36 versus the prior ¥6.31, citing small adjustments to discount rate assumptions, revenue growth expectations, profit margin outlook, and forward P/E estimates. What's in the News Board meeting scheduled for Dec 26, 2025 to review 2024 remuneration for directors and senior management, and to consider the terms of reference of the audit committee, indicating upcoming decisions on governance and pay structures (Key Developments).
6881
HK$10.90
China Galaxy Securities
7D
4.5%
1Y
69.8%

China Galaxy Securities Co., Ltd.'s (HKG:6881) Business And Shares Still Trailing The Market

Jan 05
China Galaxy Securities Co., Ltd.'s (HKG:6881) Business And Shares Still Trailing The Market
1658
HK$5.06
Postal Savings Bank of China
7D
-3.6%
1Y
14.0%
388
HK$426.80
Hong Kong Exchanges and Clearing
7D
2.6%
1Y
52.6%

388: Rising Profit Margins Will Support Stronger Long Term Share Performance

Analysts have lifted their price target for Hong Kong Exchanges and Clearing from HK$540 to HK$610, citing expectations of stronger long term profitability, supported by higher forecast profit margins and resilient valuation multiples despite moderating revenue growth assumptions. What's in the News Board meeting scheduled for February 26, 2026 to approve final results for the year ending December 31, 2025 and to consider a dividend payment (company announcement) PricewaterhouseCoopers to retire as auditor at the conclusion of the 2026 AGM, after being reappointed at the 2025 AGM to conduct the 2025 audit.