China Banks: Addressing div. yield, fundamental change, risk and 2Q25 earnings expectations 5 August 2025 | 7:31PM HKT Since the beginning of the year, the A/H share performance of our covered banks, weighted by market capitalization, has seen increases of 15%/26% respectively. Among them, CMB performed strongly, with stock price increases of 19%/33% respectively in the A/H share markets, outperforming BoCom by 15/15 percentage points. We see further support for our earlier view that the banking sector has reached an inflection point, based on recent market performance, investor discussions, and evolving economic conditions. We address key investor concerns regarding dividend yields, fundamental drivers, potential risks, and 2Q25 earnings expectations.