China Merchants Bank Co., Ltd. (600036.SS) stock analysis

In our weekly check, China Merchants Bank Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 5, red flags: 7.

About China Merchants Bank Co., Ltd.

China Merchants Bank Co., Ltd. is a Financial Services company (Banks - Regional) based in China, listed on SHH as 600036.SS.

What our checks show for 600036.SS

Red flags

• The gross margin fell by 12.8 points, to 87.2%: costs are rising faster than prices.
• Profits not backed by cash
• The stock has fallen as much as 75% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 8.7 years.
• Return on capital (ROCE) is only 1.4%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The net margin fell by 1.6 points over 5 years, to 43.6%: the company keeps less of each sale as profit.
• Analysts expect only about 4.8% a year of growth in revenue.
• Analysts expect the net margin to shrink by 0.2 points from today's 43.6%.
• Free cash flow is only 0% of revenue.

Strengths

• The company keeps 43.6% of its revenue as net profit.
• A large company: market value $158 billion.
• The price moves calmly: 17.5% annual volatility.
• Beta 0.54: the stock usually moves less than the market.
• Actively traded: about 76.4 million shares a day.

Next earnings report: 2026-10-30

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Questions

What grade does China Merchants Bank Co., Ltd. (600036.SS) have?

In our weekly check, China Merchants Bank Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 5, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 600036.SS stock?

This week's biggest flags for China Merchants Bank Co., Ltd.: Gross margin falling, Profits not backed by cash, Deep past fall. In total 12 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 SHH as 600036.SS.

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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