China Merchants Bank (600036.SH) Popularity Reason Analysis: Steady Fundamentals and Valuation Advantages Drive Performance

China Merchants Bank (600036.SH), as a leading joint-stock bank, saw strong stock price performance in 2025 with a year-to-date increase of 38.64%, and a 52-week price range of HK$34.2-HK$56.75 [0]. Its market capitalization remained above 1.21 trillion RMB, maintaining its position as a trillion-level financial leader [0]. Trading volume was active: the daily trading volume was 10.27M, and the 3-month average trading volume was 16.95M [0]. Financially, in the first three quarters, revenue was 81.451 billion yuan (+2.11% YoY), net profit was 46.183 billion yuan (+3.94% YoY), and ROE of 10.47% was significantly higher than the industry average of 7.96% [0]. In terms of valuation, the price-to-earnings ratio was 7.65x and the dividend yield was 4.22%, giving it advantages of low valuation and high dividend [0]. Institutional attention increased, and research activities in the banking sector were active in the fourth quarter [0].

1. Synergistic Effect of Valuation and Dividend
   : The low price-to-earnings ratio (7.65x) and high dividend yield (4.22%) create attractiveness, driving capital inflow [0].
2. Business Moat
   : Competitive advantages in retail banking and wealth management continue to be consolidated, with ROE leading the industry and stable asset quality [0].
3. Institutional Allocation Logic
   : Institutional research on the banking sector increased in the fourth quarter, and China Merchants Bank, as a leader, benefited from sector valuation repair [0].

: Macroeconomic fluctuations may affect asset quality, and interest rate liberalization brings net interest margin pressure [0].
: Growth potential of wealth management business, valuation repair space, and sustained dividend returns [0].
: Short-term focus on the pace of valuation repair; long-term focus on business structure optimization [0].

China Merchants Bank has become a popular market target due to its steady fundamentals, low valuation and high dividend characteristics, and retail banking advantages. It performed strongly in 2025, with financial indicators better than the industry average and increased institutional attention. Investors can pay attention to its valuation repair potential and wealth management business progress, but need to be aware of macroeconomic and interest rate environment changes [0].