According to China Daily on January 25, 2026
Bank of China recommends overweight positioning in A-shares and Hong Kong stocks amid reforms, earnings recovery, and global capital rebalancing
China’s equity market has entered the early stages of a slow but durable bull run, with structural reforms, improving corporate earnings, and global capital reallocation expected to support a long-term upward trend, according to Bank of China (BOC).
In a report released this week, BOC said it is overweight on both mainland A-shares and Hong Kong equities in 2026, citing valuation advantages, easing global liquidity conditions, and China’s growing role in global asset diversification.
“In 2026, the global financial environment is likely to remain accommodative,” BOC said. “Against the backdrop of China’s relatively strong economic growth, attractive equity valuations, and the ongoing global de-dollarization trend, Chinese equities are positioned to become a preferred destination for global portfolio rebalancing.”
Policy Support and Earnings Inflection
2026 marks the first year of China’s 15th Five-Year Plan (2026–2030), a period during which policymakers are expected to prioritize structural support over short-term stimulus. BOC expects macroeconomic policies to remain proactive, helping stabilize domestic demand and reinforce the economic recovery.
The bank forecasts China’s GDP growth at 4.7% to 5% this year.
Cai Zhao, executive vice-president of Bank of China, said China’s internal economic momentum is strengthening despite a fragile global recovery.
“While the global economy continues to face overlapping uncertainties, China’s domestic growth drivers are becoming more resilient under supportive policies,” Cai said. “This enhances the long-term allocation value of Chinese assets.”
Wen Xiaobo, a senior manager at BOC’s personal banking division, said corporate profitability has reached an inflection point, paving the way for a more sustainable equity rally.
According to estimates cited by the bank, non-financial listed companies in China are expected to post revenue growth of around 2.2% and profit growth of 5–8% in 2026.
“If these projections materialize, China’s stock market could shift from a valuation-driven rally in 2025 to a dual-engine expansion supported by both earnings growth and valuation re-rating,” Wen said.
Structural Reform and Capital Market Re-rating
Guan Tao, global chief economist at BOC International (China), identified four structural forces underpinning the long-term outlook for China’s capital markets:
Comprehensive institutional reform, aimed at removing constraints on high-quality growth
Economic transformation, creating new growth sectors and investment opportunities
Improvements in capital market infrastructure, strengthening long-term investment and financing mechanisms
Global asset rebalancing, as international investors reassess the role of Chinese assets in diversified portfolios
BOC said expectations of a gradual, long-duration bull market are strengthening, particularly as RMB appreciation expectations rise, potentially accelerating inbound capital flows.
“Chinese assets are no longer viewed as conventional emerging market exposure,” the report said. “They are increasingly integrated into global high-tech supply chains and form a key component of the global de-dollarization narrative.”
Wealth Management and Cross-Border Allocation
The report also highlighted policy recommendations tied to the 15th Five-Year Plan, including efforts to expand household property income and support the development of a more mature wealth management industry.
As China advances high-level financial opening-up, cross-border investment and wealth management demand is becoming more diversified, BOC said.
On Wednesday, the bank launched a global personal financial services solution built around unified account management across the Chinese mainland and Hong Kong. Clients can view and manage cross-border accounts through Bank of China or Bank of China (Hong Kong) mobile banking platforms.
BOC described the initiative as part of its broader strategy to facilitate global asset allocation and address growing cross-border financial needs among Chinese and international clients.