SHANGHAI, Jan 25, 2026, 05:26 GMT+8 — The market has closed.
- Bank of China Limited Class A shares slipped on Friday; mainland markets set to reopen Monday.
- The spotlight this week is on a major PBOC liquidity action and record outflows from China equity funds.
- Traders are eyeing the bank’s annual results schedule set for late March.
Bank of China Limited Class A shares ended Friday at 5.27 yuan, slipping 0.03 yuan or 0.6%, after moving between 5.26 and 5.32 yuan during the session. Trading volume reached roughly 247 million shares, per market figures. (StockAnalysis)
The stock is once again caught in the tight spot common to China’s major state banks: regulators push for easy credit, yet the market probes just how much backing these lenders will receive—and how that pressure hits their profits.
Fund flows are making headlines. Chinese equity funds experienced a record $49.2 billion outflow in the week ending Wednesday, according to BofA Global Research citing EPFR data. The firm also pointed to recent regulatory actions designed to curb market rallies. (Reuters)
Liquidity policy took center stage. The People’s Bank of China pumped in a net 700 billion yuan on Friday through its medium-term lending facility (MLF), a tool secured by collateral, aimed at keeping cash flow steady before the Lunar New Year holiday from Feb. 15 to 23, Yicai reported. “By substantially increasing medium-term liquidity, the central bank can stave off any cash crunch ahead of the holidays,” Wang Qing, chief macroeconomic analyst at Golden Credit Rating International, told Yicai. Meanwhile, Ming Ming, chief economist at CITIC Securities, suggested the chances of a near-term reserve requirement ratio (RRR) cut — the amount banks must hold at the central bank — remain slim. (Yicai Global)
Macro data dragged on sentiment. Foreign direct investment in China hit 747.7 billion yuan in 2025, falling 9.5% from the previous year, according to commerce ministry figures released Friday. (Reuters)
Bank of China investors are focused on whether quicker liquidity and policy support will boost lending demand soon enough to counteract margin pressure — the difference between what the bank earns on loans and what it pays for funding.
As mainland markets reopen Monday, traders will zero in on money-market dynamics, the fallout from the PBOC’s recent moves, and if fund outflows continue to weigh on bank valuations.
But the situation goes both ways. Extra liquidity might ease funding strains and boost risk appetite, yet more easing can also drive lending rates lower before deposit costs catch up, tightening profit margins.
Looking ahead, Bank of China is set to reveal its 2025 annual results on March 30. This report will be key in shaping views on earnings strength and dividend prospects for the following quarter. (Boc)
