Bank of China is listed on both the Shanghai Stock Exchange (601988.SS) and the Hong Kong Stock Exchange (3988.HK). BOC is also included in key indices such as the MSCI Emerging Markets Index and Hang Seng Index, reinforcing its relevance in global markets.
Bank Of China Shares Today (601988.SS)
Bank of China (BOC), founded in 1912, is one of China’s four largest state-owned commercial banks and plays a pivotal role in the country’s financial system. Headquartered in Beijing, the bank offers various services, including retail banking, corporate lending, investment banking, wealth management, and insurance. BOC is instrumental in promoting China’s international trade and cross-border transactions.
The bank has operations in over 60 countries and regions, with a strong presence in Asia, Europe, North America, and Africa. The bank is heavily involved in renminbi (CNY) internationalisation efforts, facilitating the use of the Chinese currency in trade settlements and foreign investments. Its position in foreign exchange markets and trade finance has placed it as a major player in global finance.
YOUR CAPITAL IS AT RISK
Banking Industry Comparison
Bank of China EPS and Revenue Breakdown 2020-2023
| Year | EPS | Annual Revenue |
|---|---|---|
| 2020 | $0.09 | $82.23 billion |
| 2021 | $0.11 | $93.37 billion |
| 2022 | $0.11 | $88.36 billion |
| 2023 | $0.10 (TTM) | $87.83 billion |
BOC Price & Dividend Yield
The performance of BOC shares is closely tied to macroeconomic conditions in China and global trade activity. However, despite concerns about the current economic climate in China, the stock has gained ground since November 2022. As of October 25, 2024, Bank of China shares are up over 23% in the last 12 months. BOC shares currently trade around CNY 4.91.
BOC is a dividend-paying stock. The bank’s payout ratios reflect its state-owned nature, balancing shareholder returns with government expectations for financial stability.
Dividend Yield: 8.08%
YOUR CAPITAL IS AT RISK
Bank of China Share Price Forecast
Analysts remain mixed on BOC’s outlook, although none see it as a Sell. Of 19 analysts, 12 recommend Buy and seven rate it at Hold.
A View From The Bulls: In April 2024, S&P Global said Bank of China was the world's fourth-largest bank by assets. For many investors, Bank of China presents a strong investment opportunity due to its dominant position within China's banking sector. BOC benefits from a vast customer base and a strong network of branches across China. Furthermore, the recent stimulus measures implemented by the Chinese government are expected to boost economic activity, which should help BOC.
A View From The Bears: In April 20204, Fitch Ratings cut its outlook for six Chinese state-owned banks, including Bank of China, telling readers that it sees “reduced ability to provide the same level of extraordinary support to these banks” from the Chinese government. Fitch said at the time that it believes “the state’s propensity to support the banks remains intact” but added that “the large size of the banking sector constrains the government’s ability to support the banking sector.”
Another bearish factor investors may want to watch out for is the current economic situation in China, which could impact Bank of China's stock.
Average Analyst Consensus 12-Month Price Target: CNY 5.15
Our View: Bank of China offers dividends and exposure to China’s financial sector, making it attractive for income-oriented investors. The bank’s large customer base and focus on international trade finance positions it well for the future, though challenges remain.
The softening Chinese economy, rising bad loans, and geopolitical risks are factors that could impact short-term performance. However, BOC’s state-owned status provides a level of security, ensuring that it plays a critical role in China’s domestic and international financial strategies.
Who Should Buy Bank of China Shares?
BOC shares are best suited for income-focused investors looking for consistent dividend payments and exposure to the Chinese financial system. Its global operations and involvement in trade finance and foreign exchange markets provide additional appeal for those seeking geographic diversification.
However, investors need to be mindful of risks such as regulatory changes, non-performing loans, and slower economic growth in China.
Growth-oriented investors looking for faster returns may prefer alternative investments in technology or emerging markets. Nonetheless, BOC remains a key player in the banking sector, providing a solid option for investors seeking steady returns and exposure to China’s evolving economy.
