3988:HKEXBank of China Limited Class H Analysis

Bank of China (3988.HK) trades at a **PE of 6.17**, well below the industry average of 17, and a **price‑to‑book of 0.54** versus a book value of HK$9.81 per share, indicating a deep valuation discount. The stock is supported by a **high dividend yield of 4.76%** and a modest **payout ratio of 31%**, suggesting dividend sustainability despite negative operating cash flow. Technically, the **20‑day SMA (5.224) sits above the 50‑day SMA (5.111) and the 200‑day SMA (4.639)**, confirming a bullish trend, while the **RSI at 60** points to room for upside without being overbought. The price is near the **support level of 5.06** and below the **resistance of 5.33**, offering a potential bounce with an estimated **upside of 17%** based on analyst targets. Low **beta (0.107)** and a **30‑day volatility of 16.4%** imply limited price swings, and the **fear‑greed index at 83 (Extreme Greed)** reflects strong market appetite. Overall, the combination of strong fundamentals, attractive yield, and favorable technical setup positions the stock as an **undervalued, value‑oriented investment** with upside potential.