Narrative Update • Jul 15
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Hong Kong (HSI) Financials Sector Analysis
UpdatedAug 21, 2026
DataAggregated Company Financials
Companies187
- 7D2.6%
- 3M1.9%
- 1Y8.2%
- YTD6.2%
The Financials industry is up 2.6% in the last week, with Agricultural Bank of China up 6.5%. This means that the industry has gained 8.2% over the past year. As for the next few years, earnings are expected to grow by 6.0% per annum.
Sector Valuation and Performance
Has the Hong Kong Financials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 21 Aug 2026 | HK$17.1t | HK$6.6t | HK$2.2t | 7.1x | 7.8x | 2.6x |
| Sun, 19 Jul 2026 | HK$16.4t | HK$6.5t | HK$2.2t | 6.9x | 7.5x | 2.5x |
| Tue, 16 Jun 2026 | HK$16.9t | HK$6.5t | HK$2.2t | 7.6x | 7.8x | 2.6x |
| Thu, 14 May 2026 | HK$16.8t | HK$6.5t | HK$2.2t | 7.8x | 7.7x | 2.6x |
| Sat, 11 Apr 2026 | HK$16.5t | HK$6.4t | HK$2.2t | 7.6x | 7.7x | 2.6x |
| Mon, 09 Mar 2026 | HK$16.2t | HK$6.3t | HK$2.1t | 9.8x | 7.7x | 2.6x |
| Wed, 04 Feb 2026 | HK$16.3t | HK$6.3t | HK$2.1t | 10x | 7.8x | 2.6x |
| Fri, 02 Jan 2026 | HK$17.1t | HK$6.3t | HK$2.1t | 9.5x | 8.1x | 2.7x |
| Sun, 30 Nov 2025 | HK$17.4t | HK$6.2t | HK$2.1t | 9.6x | 8.4x | 2.8x |
| Tue, 28 Oct 2025 | HK$17.2t | HK$6.0t | HK$2.0t | 11.7x | 8.8x | 2.8x |
| Thu, 25 Sep 2025 | HK$16.2t | HK$6.2t | HK$2.0t | 11.2x | 8x | 2.6x |
| Sat, 23 Aug 2025 | HK$17.2t | HK$6.1t | HK$2.0t | 12.7x | 8.6x | 2.8x |
| Mon, 21 Jul 2025 | HK$16.8t | HK$6.1t | HK$2.0t | 12.3x | 8.4x | 2.8x |
| Wed, 18 Jun 2025 | HK$15.2t | HK$6.1t | HK$2.0t | 10.4x | 7.6x | 2.5x |
| Fri, 16 May 2025 | HK$14.7t | HK$6.0t | HK$2.0t | 9.1x | 7.4x | 2.4x |
| Sun, 13 Apr 2025 | HK$13.3t | HK$5.9t | HK$2.0t | 8.1x | 6.8x | 2.2x |
| Tue, 11 Mar 2025 | HK$13.7t | HK$6.4t | HK$1.9t | 9.5x | 7.3x | 2.1x |
| Thu, 06 Feb 2025 | HK$13.2t | HK$6.4t | HK$1.9t | 9.2x | 7x | 2.1x |
| Sat, 04 Jan 2025 | HK$13.0t | HK$6.3t | HK$1.9t | 9.2x | 6.9x | 2.1x |
| Mon, 02 Dec 2024 | HK$12.7t | HK$6.4t | HK$1.9t | 9.7x | 6.7x | 2x |
| Wed, 30 Oct 2024 | HK$13.1t | HK$6.4t | HK$1.8t | 10.3x | 7.2x | 2.1x |
| Fri, 27 Sep 2024 | HK$13.0t | HK$6.5t | HK$1.8t | 8.7x | 7x | 2x |
| Sun, 25 Aug 2024 | HK$12.3t | HK$6.3t | HK$1.8t | 7.8x | 6.8x | 1.9x |
| Tue, 23 Jul 2024 | HK$11.6t | HK$6.2t | HK$1.8t | 7.7x | 6.5x | 1.9x |
| Thu, 20 Jun 2024 | HK$11.7t | HK$6.2t | HK$1.8t | 7.7x | 6.6x | 1.9x |
| Sat, 18 May 2024 | HK$12.1t | HK$6.2t | HK$1.8t | 8.4x | 6.8x | 1.9x |
| Mon, 15 Apr 2024 | HK$10.9t | HK$6.3t | HK$1.8t | 7.7x | 6x | 1.7x |
| Wed, 13 Mar 2024 | HK$11.2t | HK$7.0t | HK$1.8t | 7.1x | 6.3x | 1.6x |
| Fri, 09 Feb 2024 | HK$10.8t | HK$6.8t | HK$1.7t | 7x | 6.3x | 1.6x |
| Sun, 07 Jan 2024 | HK$11.3t | HK$8.7t | HK$1.9t | 7x | 6x | 1.3x |
| Tue, 05 Dec 2023 | HK$11.3t | HK$8.7t | HK$1.9t | 7x | 6x | 1.3x |
| Thu, 02 Nov 2023 | HK$11.3t | HK$8.5t | HK$1.8t | 7.3x | 6.2x | 1.3x |
| Sat, 30 Sep 2023 | HK$11.6t | HK$8.5t | HK$1.8t | 7.3x | 6.3x | 1.4x |
| Mon, 28 Aug 2023 | HK$11.4t | HK$8.5t | HK$1.8t | 7.4x | 6.2x | 1.3x |
Price to Earnings Ratio
6.2x
Current Industry PE
- Investors are relatively neutral on the Hong Kong Financials industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 7.2x.
- The 3-year average PS ratio of 2.2x is lower than the industry's current PS ratio of 2.6x.
Past Earnings Growth
- The earnings for companies in the Financials industry have grown 6.0% per year over the last three years.
- Meanwhile revenues for these companies have declined 8.4% per year.
- This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.
Industry Trends
Which industries have driven the changes within the Hong Kong Financials sector?
| HK Market | 1.73% | |
| Financials | 2.60% | |
| Diversified Financial | 8.39% | |
| Banks | 3.80% | |
| Consumer Finance | 2.55% | |
| Mortgage Finance | 0% | 0 |
| Capital Markets | -0.85% | |
| Insurance | -1.39% | |
Industry PE
- Investors are most optimistic about the Capital Markets industry even though it's trading below its 3-year average PE ratio of 28.1x.
- Analysts are expecting annual earnings growth of 9.5%, which is lower than the prior year's growth of 84.3% per year.
- Investors are most pessimistic about the Diversified Financial industry, which is trading close to its 3-year average of 7.6x.
Forecasted Growth
- Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 13% over the next 5 years.
- However this is lower than its past earnings growth rate of 17% per year.
- In contrast, the Diversified Financial industry is expected to see its earnings grow by 4.3% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 1288 Agricultural Bank of China | HK$6.28 | 7.5% +HK$154.0b | 14.2% | PB0.6x | |
| 939 China Construction Bank | HK$9.25 | 5.8% +HK$132.1b | 19.3% | PB0.6x | |
| 1398 Industrial and Commercial Bank of China | HK$7.48 | 4.3% +HK$110.5b | 25.4% | PB0.5x | |
| 3988 Bank of China | HK$5.51 | 4.9% +HK$82.2b | 24.3% | PB0.5x | |
| 1299 AIA Group | HK$75.15 | 6.7% +HK$47.7b | 3.2% | PE12.4x |