Bank of China Limited (601988.SS) stock analysis

In our weekly check, Bank of China Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 2, red flags: 6.

About Bank of China Limited

Bank of China Limited is a Financial Services company (Banks - Diversified) based in China, listed on SHH as 601988.SS.

What our checks show for 601988.SS

Red flags

• The gross margin fell by 11.4 points, to 51%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 16.1% a year.
• The stock has fallen as much as 66% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 1%.

Warning signs

• The net margin fell by 2 points over 5 years, to 20.4%: the company keeps less of each sale as profit.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 3.81x net profit: the profit arrives as real cash.
• Analysts expect the net margin to improve by 11.3 points from today's 20.4%.
• The company keeps 20.4% of its revenue as net profit.
• Free cash flow is 72.5% of revenue: cash for dividends, buybacks or growth.
• A large company: market value $314 billion.
• Beta 0.1: the stock usually moves less than the market.

Similar companies

601288.SS · 601939.SS · 601398.SS · 1398.HK · JPM · 601328.SS

Questions

What grade does Bank of China Limited (601988.SS) have?

In our weekly check, Bank of China Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 2, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 601988.SS stock?

This week's biggest flags for Bank of China Limited: Gross margin falling, Weak revenue forecast, Deep past fall. In total 8 of 25 checks show a warning or a red flag.

What does Bank of China Limited do?

Bank of China Limited is a Financial Services company (Banks - Diversified) based in China, listed on SHH as 601988.SS.

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 2026-10-31

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