Shanghai, Feb 2, 2026, 04:23 GMT+8 — Premarket
- Bank of China Limited Class A shares ended unchanged at 5.37 yuan on Jan. 30.
- January’s official PMI figures showed both manufacturing and services slipping into contraction.
- Investors are eyeing the private-sector PMI set for release later on Feb. 2, with the next earnings update scheduled for March 31.
Bank of China Limited Class A shares start Monday facing a softer China activity report, with official data revealing both factory and services sectors contracted in January. The stock ended Friday steady at 5.37 yuan, unchanged (0.0%), after moving between 5.35 and 5.43 yuan during the session. (Investing)
This matters because major state lenders stand at the crossroads of policy and the real economy. A slowdown in growth might prompt further easing, but it also risks dampening loan demand and squeezing profits.
China’s official purchasing managers’ index (PMI) dropped to 49.3 in January from 50.1, slipping below the 50 mark that separates growth from contraction. The non-manufacturing PMI weakened too, falling to 49.4 from 50.2—the lowest since December 2022, according to Saturday’s release. New orders and export orders declined as well. “Market demand remains weak,” said Huo Lihui from the National Bureau of Statistics. Nomura’s Ting Lu warned that Beijing “will have to do much more” to keep 2026 growth above 4.5%. (Reuters)
On Sunday, a private property survey painted a mixed picture for a sector that continues to weigh on banking credit risk. The China Index Academy reported average new-home prices in 100 cities edged up 0.18% month-on-month in January. Meanwhile, declines in the resale market eased to 0.85%. (Reuters)
Markets were sluggish heading into the weekend. On Jan. 30, the Shanghai Composite dropped 0.96%, while the blue-chip CSI 300 slid 1.0%. Bank of China’s unchanged finish stood out as a rare spot of stability. (Investing)
Lenders face a well-known dilemma: lower rates may boost borrowing but squeeze net interest margins — the difference between earnings on loans and costs on deposits.
This week’s tug-of-war will probably show up in the data before it hits corporate news. Investors will be looking for clues that softer activity is dampening credit appetite, and whether policy measures are targeting demand instead of just supply.
Industrial and Commercial Bank of China, China Construction Bank, and Agricultural Bank of China often sway together with broader macro trends, frequently setting the pace for the sector right from the start of trading.
The downside risk remains intact. Should domestic demand remain weak and the property sector fail to rebound, loan growth could decelerate and bad debts climb, all while easing squeezes margins.
Investors are eyeing one key date: Bank of China will report earnings on March 31, per Investing.com. Comments on capital buffers, bad loans, and dividends could heavily influence moves heading into quarter-end. (Investing)
Monday kicks off with the private-sector PMI release later in the day. The key question: will bank stocks see the soft surveys as a signal to ramp up support, or as a red flag that the slowdown persists?
