China Merchants Bank Co., Ltd. (3968.HK) stock analysis

In our weekly check, China Merchants Bank Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 0, red flags: 6.

About China Merchants Bank Co., Ltd.

China Merchants Bank Co., Ltd. is a Financial Services company (Banks - Regional) based in China, listed on HKSE as 3968.HK.

What our checks show for 3968.HK

Red flags

• Revenue fell 7.7% a year over the last 3 years.
• The stock has fallen as much as 75% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 8.5 years.
• Return on capital (ROCE) is only 1.4%.

Strengths

• The net margin rose by 13.8 points over 5 years, to 40.4%.
• The gross margin is 83.6% and has risen by 10.9 points: pricing power is holding.
• Operating cash flow is 3.96x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 10.9% a year over the next years.
• Analysts expect the net margin to improve by 3.7 points from today's 40.4%.
• The company keeps 40.4% of its revenue as net profit.

Next earnings report: 2026-10-30

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Questions

What grade does China Merchants Bank Co., Ltd. (3968.HK) have?

In our weekly check, China Merchants Bank Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 0, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 3968.HK stock?

This week's biggest flags for China Merchants Bank Co., Ltd.: Weak revenue growth, Deep past fall, Slow recovery after falls. In total 6 of 25 checks show a warning or a red flag.

What does China Merchants Bank Co., Ltd. do?

China Merchants Bank Co., Ltd. is a Financial Services company (Banks - Regional) based in China, listed on HKSE as 3968.HK.

When does China Merchants Bank Co., Ltd. report earnings next?

The next earnings report is expected on 2026-10-30. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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