Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

Hong Kong (HSI) Financials Sector Analysis

UpdatedJan 06, 2026
DataAggregated Company Financials
Companies185
  • 7D0.9%
  • 3M7.1%
  • 1Y34.7%
  • YTD-0.9%

The Financials is pretty flat in the last 7 days, but China Life Insurance has stood out, gaining 11%. As for the the longer term, the industry is up 35% over the past 12 months. Looking forward, earnings are forecast to grow by 2.4% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 06 Jan 2026HK$17.2tHK$6.3tHK$2.1t10x8.2x2.7x
Thu, 04 Dec 2025HK$17.1tHK$6.2tHK$2.1t9.6x8.2x2.8x
Sat, 01 Nov 2025HK$16.9tHK$6.2tHK$2.1t11.1x8.2x2.7x
Mon, 29 Sep 2025HK$16.1tHK$6.2tHK$2.0t10.9x7.9x2.6x
Wed, 27 Aug 2025HK$17.1tHK$6.1tHK$2.0t12.7x8.6x2.8x
Fri, 25 Jul 2025HK$16.8tHK$6.1tHK$2.0t12.1x8.3x2.8x
Sun, 22 Jun 2025HK$15.6tHK$6.1tHK$2.0t9.8x7.8x2.6x
Tue, 20 May 2025HK$14.5tHK$6.0tHK$2.0t9.5x7.3x2.4x
Thu, 17 Apr 2025HK$13.6tHK$5.9tHK$2.0t8.1x7x2.3x
Sat, 15 Mar 2025HK$13.9tHK$6.5tHK$1.9t9.8x7.3x2.1x
Mon, 10 Feb 2025HK$13.2tHK$6.4tHK$1.9t9.5x7x2.1x
Wed, 08 Jan 2025HK$13.0tHK$6.3tHK$1.9t9.3x7x2.1x
Fri, 06 Dec 2024HK$12.9tHK$6.4tHK$1.9t9.3x6.9x2x
Sun, 03 Nov 2024HK$13.0tHK$6.5tHK$1.9t9.6x6.8x2x
Tue, 01 Oct 2024HK$13.3tHK$6.5tHK$1.8t9.7x7.2x2.1x
Thu, 29 Aug 2024HK$12.4tHK$6.3tHK$1.8t7.8x6.9x2x
Sat, 27 Jul 2024HK$11.6tHK$6.2tHK$1.8t8x6.5x1.9x
Mon, 24 Jun 2024HK$11.6tHK$6.2tHK$1.8t7.7x6.5x1.9x
Wed, 22 May 2024HK$12.1tHK$6.2tHK$1.8t8.1x6.8x1.9x
Fri, 19 Apr 2024HK$11.3tHK$6.3tHK$1.8t7.4x6.2x1.8x
Sun, 17 Mar 2024HK$11.0tHK$7.0tHK$1.8t6.9x6.1x1.6x
Tue, 13 Feb 2024HK$10.8tHK$6.8tHK$1.7t7x6.3x1.6x
Thu, 11 Jan 2024HK$11.0tHK$8.4tHK$1.9t6.9x5.9x1.3x
Sat, 09 Dec 2023HK$11.1tHK$8.7tHK$1.9t7x5.9x1.3x
Mon, 06 Nov 2023HK$11.4tHK$8.5tHK$1.8t7.3x6.2x1.3x
Wed, 04 Oct 2023HK$11.6tHK$8.5tHK$1.8t7.3x6.3x1.4x
Fri, 01 Sep 2023HK$11.5tHK$8.6tHK$1.8t7.6x6.3x1.3x
Sun, 30 Jul 2023HK$12.3tHK$8.4tHK$1.9t7.8x6.6x1.5x
Tue, 27 Jun 2023HK$12.1tHK$8.3tHK$1.8t7.5x6.5x1.5x
Thu, 25 May 2023HK$12.5tHK$8.5tHK$1.9t7.8x6.6x1.5x
Sat, 22 Apr 2023HK$12.6tHK$8.6tHK$1.9t7.8x6.6x1.5x
Mon, 20 Mar 2023HK$12.2tHK$8.6tHK$1.9t6.9x6.3x1.4x
Wed, 15 Feb 2023HK$12.3tHK$8.7tHK$2.0t7.1x6.1x1.4x
Fri, 13 Jan 2023HK$12.5tHK$8.8tHK$2.0t7x6.3x1.4x
Price to Earnings Ratio

6.3x


Total Market Cap: HK$12.5tTotal 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 8.2x 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 10% 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 Market1.54%
Financials0.85%
Insurance4.64%
Capital Markets2.72%
Consumer Finance0.30%
Mortgage Finance0%0
Banks-0.31%
Diversified Financial-1.09%
Industry PE
  • Investors are most optimistic about the Capital Markets industry even though it's trading below its 3-year average PE ratio of 29.4x.
    • Analysts are expecting annual earnings growth of 9.0%, which is lower than the prior year's growth of 96.4% per year.
  • Investors are most pessimistic about the Diversified Financial industry, which is trading close to its 3-year average of 7.8x.
Forecasted Growth
  • Analysts are most optimistic on the Capital Markets industry, expecting annual earnings growth of 9.0% over the next 5 years.
  • In contrast, the Insurance industry is expected to see its earnings decline by 7.8% 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$31.1011.3%
+HK$89.3b		122.5%PE4.6x
1299 AIA GroupHK$86.055.4%
+HK$46.1b		57.5%PE19.1x
1339 People's Insurance Company (Group) of ChinaHK$7.5011.4%
+HK$34.1b		107.8%PE5.7x
388 Hong Kong Exchanges and ClearingHK$432.405.8%
+HK$30.1b		52.1%PE31.8x
2328 PICC Property and CasualtyHK$17.446.1%
+HK$22.2b		49.3%PE9.1x

Latest News

2328
HK$17.44
PICC Property and Casualty
7D
6.1%
1Y
49.3%
1299
HK$86.05
AIA Group
7D
5.4%
1Y
57.5%

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$5.56
Agricultural Bank of China
7D
-4.1%
1Y
30.5%

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$11.33
China Galaxy Securities
7D
12.8%
1Y
69.4%

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
2628
HK$31.10
China Life Insurance
7D
11.3%
1Y
122.5%
1658
HK$5.21
Postal Savings Bank of China
7D
-2.6%
1Y
14.5%
1339
HK$7.50
People's Insurance Company (Group) of China
7D
11.4%
1Y
107.8%
1398
HK$6.21
Industrial and Commercial Bank of China
7D
-1.0%
1Y
26.5%

1398: Future Margin Compression May Drive Share Price Underperformance

Analysts have modestly raised their price target on Industrial and Commercial Bank of China, reflecting a slightly higher fair value estimate of RMB 5.35 from RMB 5.29. This is supported by expectations for stronger revenue growth, a lower discount rate, and a marginally cheaper forward P/E multiple, despite a small compression in profit margins.
1963
HK$7.76
Bank of Chongqing
7D
-1.8%
1Y
30.2%
3908
HK$22.24
China International Capital
7D
14.3%
1Y
83.2%
388
HK$432.40
Hong Kong Exchanges and Clearing
7D
5.8%
1Y
52.1%

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.
3988
HK$4.45
Bank of China
7D
-0.9%
1Y
13.5%

3988: Future Margin Pressure May Undermine Slight Risk Improvement

Analysts have modestly raised their price target on Bank of China to reflect a slightly lower perceived risk profile and stronger expectations for revenue growth, partly offset by a marginally weaker profit margin outlook and a higher anticipated future valuation multiple. What's in the News A board meeting is scheduled for December 19, 2025 to review disclosure policy, directors and senior management securities trading rules, routine connected transactions caps with China CITIC Financial AMC, Shanghai Stock Exchange related matters, and 2024 remuneration plans for executive directors and senior management (Key Developments).
3360
HK$7.69
Far East Horizon
7D
-4.5%
1Y
40.3%
2858
HK$2.38
Yixin Group
7D
-5.9%
1Y
183.3%

Why Investors Shouldn't Be Surprised By Yixin Group Limited's (HKG:2858) 27% Share Price Surge

Dec 09
Why Investors Shouldn't Be Surprised By Yixin Group Limited's (HKG:2858) 27% Share Price Surge
966
HK$21.30
China Taiping Insurance Holdings
7D
12.8%
1Y
94.0%
1551
HK$1.50
Guangzhou Rural Commercial Bank
7D
-1.3%
1Y
-7.4%