The Economic Information Daily reported on the 28th: Stock Connect Northbound trading resumed today, driving a collective rise in mainland banks. ICBC (01398) rose 3.1%, trading at HK$7.75; CCB (00939) gained 2.3%, at HK$9.755; Bank of China (03988) rose 2.5% to HK$6.13; ABC (01288) climbed 2.9% to HK$6.705; Bank of Communications (03328) increased 1.8% to HK$8.345; and China Merchants Bank (03968) rose 2% to HK$51.5.

The Hang Seng Index stood at 24,726, up 216 points or 0.9%, with main board turnover nearing HK$26.8 billion. The Hang Seng China Enterprises Index was at 8,256, up 90 points or 1.1%. The Hang Seng Tech Index stood at 4,303, down 8 points or 0.2%.

Recently, several large state-owned and joint-stock banks have launched customer asset growth incentive programs, attracting clients to increase deposits and purchase wealth management products and funds through rewards, points, and membership benefits, aiming to boost retail asset under management (AUM). Analysts noted that September marks the closing window of the third quarter, creating pressure for banks to meet interim retail targets. Especially as net interest margins continue to narrow and traditional loan-deposit spreads provide diminishing profit support, banks need to actively develop fee-based businesses and increase the proportion of non-interest income. Wealth management-related fee income linked to AUM has become a key driver for stable revenue. Meanwhile, banks using membership benefits to lock in existing clients and attract new ones helps solidify their full-year retail foundation.

 (vs)