Analysis of Reasons and Driving Factors for Industrial Bank (601166.SH) Being on the Popular List

Industrial Bank (601166.SH), one of China’s major joint-stock commercial banks, has recently been on the popular list. The current share price is approximately 21.36 yuan, with a P/E ratio of 5.85x and a P/B ratio of 0.51x, placing its valuation in a reasonable range; the dividend yield of 4.87% is attractive to investors. In Q3 2025, its net profit was 63.083 billion yuan, a slight year-on-year increase of 0.12%, and ROE was 8.54%. The number of shareholders is 217,900, with institutional investors dominating (such as Fujian Provincial Department of Finance, People’s Insurance Company of China, etc.).

• Increased activity in the capital market
  : Drives an increase in customers’ allocation of equity-linked products;
• Favorable policies
  : The central bank’s interest rate cuts reduce liability costs and protect net interest margins;
• Sector rotation
  : Funds flow from high-valued sectors to defensive varieties like banks;
• Business innovation
  : Established a financial asset investment company to expand debt-to-equity swap business and serve new-quality productivity;
• High dividend strategy
  : Institutional funds have strong motivation to increase allocation of bank stocks.

Industrial Bank’s popularity reflects the market’s preference for defensive assets and high dividend strategies. At the same time, its own business layout (such as debt-to-equity swaps) aligns with policy directions and is expected to continue benefiting from capital market development and sector rotation.