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3988:HKEXBank of China Limited Class H Analysis

Data as of 2026-09-06 - not real-time

HK$6.07

Latest Price

3/10Risk

Risk Level: Low

Executive Summary

The moving-average structure behind Bank of China Limited is bullish at HKD 6.07, with short-term averages leading the long-term ones. It has gained 13.8% over the past 30 days. Momentum indicators put RSI at 77.3 (overbought) with MACD reading bullish. Watch HKD 5.18 as support and HKD 6.14 as the nearer resistance level.
The shares look undervalued, trading on 7.1 times earnings below a sector average of 16.5. Consensus targets land 3.9% above where the shares trade now. Revenue is growing at 5.3% on a 43.4% profit margin. The 4.21% dividend yield looks covered by current payout levels.
On a 1-10 scale the risk profile lands at 3 — low. With 30-day volatility of 23.1%, a beta of 0.26 and a maximum drawdown of 13.0%, the drawdown profile is forgiving relative to most of the market. The wider market backdrop reads extreme greed at 95 on the fear-greed composite.
Across every horizon the signals point the same way: buy, at a conviction of 7 out of 10.

Market Outlook

Short Term

< 1 year
Positive
Model confidence: 7/10

Key Factors

  • Short-term moving averages stacked above long-term ones
  • RSI at 77.3 signals overbought conditions
  • Trading above the 200-day average of 4.94

Medium Term

1–3 years
Positive
Model confidence: 7/10

Key Factors

  • Short-term moving averages stacked above long-term ones
  • RSI at 77.3 signals overbought conditions
  • P/E of 7.1 versus sector average of 16.5

Long Term

> 3 years
Positive
Model confidence: 7/10

Key Factors

  • P/E of 7.1 versus sector average of 16.5
  • Profit margin of 43.4% is healthy
  • Dividend yield of 4.21%

Key Metrics & Analysis

Financial Health

Revenue Growth5.30%
Profit Margin43.38%
P/E Ratio7.1
ROE8.29%
ROA0.69%
P/B Ratio0.6
Op. Cash FlowHK$37.7B
Industry P/E16.5

Technical Analysis

TrendBullish
RSI77.3
SupportHK$5.18
ResistanceHK$6.14
MA 20HK$5.54
MA 50HK$5.32
MA 200HK$4.94
MACDBullish
VolumeIncreasing
Fear & Greed Index95.48

Valuation

Target PriceHK$6.30
Upside/Downside3.92%
GradeUndervalued
TypeValue
Dividend Yield4.21%

Risk Assessment

Beta0.26
Volatility23.06%
Sector RiskMedium
Reg. RiskHigh
Geo RiskHigh
Currency RiskHigh
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.