Shanghai, Jan 26, 2026, 00:42 GMT+8 — The market has closed.
- Agricultural Bank of China Class A shares closed lower on Friday, dragged down by weakness across the banking sector.
- Traders kick off the week eyeing the yuan and worldwide rate signals, with attention fixed on the Fed.
- Official PMI figures from China, due later this week, might shift expectations around credit demand and policy moves.
Agricultural Bank of China Ltd’s Class A shares on the Shanghai exchange ended Friday at 6.75 yuan, slipping 0.06 yuan, or 0.88%, as the weekend approached. The stock’s 52-week range stands between 4.92 and 8.68 yuan, per market data. (Trading Economics)
As one of China’s “big four” banks, the state-owned lender’s A-shares — mainland stocks traded in yuan — frequently react to changing expectations around stimulus measures, loan expansion, and efforts to address risks tied to the property sector.
Global rate expectations have resurfaced this week as investors zero in on Fed Chair Jerome Powell’s remarks, despite broad anticipation that the central bank will hold steady, according to a Reuters Morning Bid report. (Reuters)
The Federal Reserve’s upcoming policy meeting is set for Jan. 27-28, according to its calendar. Moves in the dollar following the decision often impact the yuan, which in turn can influence foreign demand for Chinese financial stocks. (Federal Reserve)
Friday saw Agricultural Bank of China’s shares fluctuate from 6.73 to 6.86 yuan, with roughly 396 million shares changing hands, according to Yahoo Finance. (Yahoo Finance)
Lenders took a cautious stance as the CSI Banks Index slipped 0.92%, closing at 7,032.57 on Jan. 23. The sector headed into Monday’s open on the back foot. (Moomoo)
Currency shifts might sway sentiment as well. On Friday, China’s central bank pegged the yuan’s daily fixing at 6.9929 per dollar — marking its strongest level in nearly three years and the first time dipping below 7 since May 2023. Traders often see this as a key policy signal. (The Wall Street Journal)
China’s commerce ministry reported that foreign direct investment hit 747.7 billion yuan in 2025, marking a 9.5% drop from the previous year. The slowdown in incoming investment could heighten hopes for looser financial policies. (Reuters)
Fiscal backing continues to play a role. Last week, China’s state planner announced the issuance of 93.6 billion yuan in ultra-long-term special treasury bonds aimed at funding equipment upgrades in 2026 — a move that could affect credit demand and the flow of bank loans. (Reuters)
Downside risks remain tied to property and asset quality. Chinese rural banks continue to face challenges selling foreclosed properties, even after slashing prices by 20% to 30%. “We’re definitely in the largest non-performing-asset disposal cycle historically,” Gavekal Dragonomics analyst Xiaoxi Zhang told Reuters. (Reuters)
Investors will turn their attention to a mix of macro data and policy hints. The National Bureau of Statistics of China has scheduled the January purchasing managers’ index (PMI) report for Jan. 31 at 9:30 a.m. This survey-based measure of factory and services activity could influence expectations around loan demand and potential easing moves. (National Bureau of Statistics of China)
