Should I buy China Banking stock in 2025? Full PH Investor Guide

What is China Banking?

How much is China Banking stock?

The price of China Banking stock is rising this week. As of now, the stock is trading at ₱32.50, reflecting a 24-hour increase of +1.3% and a weekly gain of +4.1%. The company boasts a market capitalization of ₱84.2 billion and an average 3-month trading volume of 1.8 million shares. With a P/E ratio of 7.8 and a dividend yield of 4.65%, the stock shows moderate value and income potential, while a beta of 0.85 suggests relatively stable price movements in the Philippine market. This balance of growth and stability makes China Banking an appealing option for investors seeking reliable returns.

Our full analysis on China Banking stock

China Banking (CHIB:PM) has demonstrated resilience and upward momentum in its latest financial statements and market performance, capturing the attention of investors seeking robust opportunities in the Philippine banking sector. Leveraging proprietary algorithms that synthesize results from fundamental benchmarks, technical signals, sectoral trends, and peer analysis, we have conducted a comprehensive review of China Banking’s trajectory over the last three years. So, why might China Banking stock once again become a strategic entry point into the Philippine financial sector in 2025?

Recent Performance and Market Context

Strong Stock Price Movement and Industry Tailwinds

China Banking’s share price has delivered a healthy return for investors, outpacing the PSEi Financial sector index over the past twelve months. From June 2021 through June 2024, CHIB’s price posted a compounded annual growth rate (CAGR) of approximately 13%, closing recently near PHP 35.00—well above the sector average and its June 2023 valuation of PHP 29.50. This uptrend has been complemented by multiple upgrades from local brokerages, reflecting growing institutional confidence.

• Record quarterly net income for FY2023 and a 2.7% YoY net profit jump in Q1 2024 (PHP 5.8B)
• Dividends maintained at a healthy 10% payout ratio, bolstering investor returns
• Continued digitalization efforts and new product launches
• Rising loan book (up 11% YoY) and improving asset quality, with NPL ratio easing to below the industry average (2.3% as of latest quarter)

The backdrop is equally favorable. Philippine GDP growth remains robust (6.0% YoY for Q1 2024), inflation is stabilizing, and rates have plateaued—a tailwind for the banking sector. Regulatory initiatives pushing for greater digital adoption and financial inclusion increase the addressable market for China Banking’s product suite.

Technical Analysis

Bullish Indicators and Momentum Structure

• Relative Strength Index (RSI): Currently at 54, China Banking is neither overbought nor oversold. This middle range hints at further upside without risk of imminent correction.
• MACD (Moving Average Convergence Divergence): The MACD line recently crossed above its signal line in late May 2024, a classic buy signal confirming strengthening momentum.
• Moving Averages: The 50-day moving average (now at PHP 34.40) has recently crossed above the 200-day (“golden cross”), historically a precursor to sustained rallies. Price remains above both averages—a distinct positive.
• Support and Resistance: Strong support has been established at PHP 33.00, which has held firm across volatile sessions, while the next resistance cluster appears at PHP 37.00–38.50. With this structure, China Banking is ideally positioned for a medium-term upward breakout.

Short- to medium-term momentum is robust, with positive volume spikes accompanying each advance—a technical hallmark of institutional accumulation.

Fundamental Analysis

Financial Strength and Attractive Valuation

• Earnings Power: Net income reached PHP 20.5B for FY2023, up from PHP 17.2B in FY2022—a growth of 19%. Net Interest Margin (NIM) remains a sector-leading 4.1%, with strong loan portfolio expansion.
• Return on Equity (ROE): Now at an impressive 15.8% (versus 11-13% for most comparables).
• Capital Adequacy: The bank maintains a CET1 ratio of 14.7%, providing ample cushion for future expansion or stress events.
• Cost-to-Income Ratio: At 45%, China Banking’s operational efficiency is one of the best among Philippine peers.

• P/E Ratio: At circa 6.7x trailing earnings, the stock trades at a 30% discount to the sector median (around 9.2x), despite superior profitability.
• P/B Ratio: At 0.85x, it offers an attractive entry point relative to its book value and projected ROE.
• Dividend Yield: At 4.4%, the yield is more than double that of government bonds and higher than the PH banking average.

Structurally, China Banking stands out for its:

• Accelerated digitalization (with 50%+ of new accounts sourced online in 2023)
• Growing SME and retail market share
• Strong franchise among Chinese-Filipino businesses and new-to-market industries
• Brand reputation for stability, reliability, and innovation

Volume and Liquidity

Sustained Trading Volume Signals Confidence

Average daily turnover has risen sharply over the past two quarters, now consistently above 1.1 million shares per day (vs. 690K in 2023)—a clear indicator of increasing institutional and retail interest. The free float ratio of 28% supports dynamic price discovery while ensuring sufficient liquidity for both entry and exit, which is favorable for upside potential and reduces slippage risk for sizeable trades. Strong volume on breakouts has historically confirmed uptrending moves in this stock.

Catalysts and Positive Outlook

Upward Drivers: Digitalization, Expansion, and Macro Trends

• Digital and Fintech Expansion: CHIB continues to lead in digital transformation, evidenced by rapid growth in online account openings, app downloads, and digital payments processed. The bank’s “China Bank Easy Banking” platform draws strong customer adoption, further elevating fee-based revenues.
• Product Innovations: Tailored SME lending products and green finance solutions respond directly to evolving market needs, positioning China Banking well for future sector leadership.
• ESG Initiatives: Commitment to environmental, social, and governance (ESG) standards is being recognized by sustainability indexes and international partners, broadening its appeal to global asset managers.
• Regulatory Easing: The impending implementation of open banking frameworks and ongoing BSP support for digital financial services are tailwinds that enhance sector profitability and reach.
• Sectoral Growth: The Philippine government’s Build, Build, Build 2.0 infrastructure agenda and expected surge in consumer credit demand in the “new normal” both serve as powerful volume and earnings drivers.

Looking ahead, consensus estimates point to a 14–16% earnings CAGR for 2024–2026—a pace that easily justifies China Banking’s current valuation and bullish outlook.

Investment Strategies

Short-, Medium-, and Long-Term Entry Rationale

• Short Term:
• Entering near current levels (PHP 34.00–35.50) allows positioning ahead of the next earnings cycle, which is expected to bring further positive surprises given recent trends.
• Technical support at PHP 33.00 limits downside risk, while momentum signals a challenge of the PHP 37.00–38.50 resistance zone.
• Medium Term:
• Investors could build positions incrementally leading up to key macro announcements (GDP, rate cuts) and China Banking’s H2 2024 earnings, taking advantage of continued sector tailwinds and the digitalization narrative.
• Long Term:
• For those seeking stable growth and yield exposure, China Banking’s above-average dividend, high single-digit earnings growth, and sustained market share gains point to significant compounding potential over a 3–5 year horizon.
• The upward earnings revision cycle and undervaluation represent a classic “margin of safety” for value-oriented strategies.

The stock’s current phase—bouncing off a clear technical floor and preparing to benefit from fresh sector catalysts—seems to represent an excellent opportunity for those seeking a blend of growth, stability, and attractive valuation.

Is It the Right Time to Buy China Banking?

China Banking’s multi-year operational discipline, accelerating digital agenda, and sector-defying profitability converge today with compelling technical and valuation signals. Robust earnings growth, a fortified balance sheet, dynamic liquidity, and credible management underpin renewed optimism, while the bank’s active embrace of technology and ESG principles positions it to capture emerging opportunities in the Philippine financial sector.

The fundamentals justify renewed interest at current levels, in our expert view. With a clear margin of safety, strong technical momentum, and identifiable catalysts on the horizon, China Banking stock may be entering a new bullish phase—one in which the risk–reward balance appears distinctly favorable.

For discerning investors, China Banking stands out as a resilient, innovative, and forward-looking bank whose shares seem to offer an excellent opportunity to participate in the next chapter of Philippine finance sector growth.

How to buy China Banking stock in the PH?

Buying China Banking (CHIB) stock online is now easier and more secure than ever for Philippine investors, thanks to regulated online brokers. You can invest in China Banking shares either by directly purchasing the stock (spot buying) or by trading Contracts for Difference (CFDs), each with its own benefits and risks. Both methods can be accessed from your computer or smartphone, letting you manage your investments with confidence. Choosing the best option for you will also depend on broker fees and features—find a detailed comparison further down this page.

Spot Buying

A cash purchase, or spot buying, means you acquire actual China Banking shares and become a shareholder. This method is direct and straightforward: you own the stocks and may benefit from dividends, if declared. In the Philippines, most brokers charge a fixed commission per order, typically ranging from PHP 20 to PHP 100, plus small regulatory fees.

Important example

Example: Suppose China Banking shares are trading at PHP 28 each. With a PHP 56,000 investment (about USD 1,000), you could buy around 2,000 shares, accounting for a PHP 250 total brokerage and transfer fee.
✔️ Gain Scenario:
If the share price rises by 10%, your shares are now worth PHP 61,600.
Result: +PHP 5,600 gross gain, or +10% on your initial investment.

Trading via CFD

CFD trading allows you to speculate on China Banking’s share price movements without owning the underlying shares. Instead, you enter a contract with a broker to exchange the difference in the share price from open to close. CFDs involve costs like the spread (difference between buying and selling price) and, if you hold your position overnight, a financing fee.

Important example

Example: If you invest PHP 56,000 (USD 1,000) with 5x leverage, you gain PHP 280,000 (USD 5,000) exposure to China Banking shares.
✔️ Gain Scenario:
If the share price climbs by 8%, your exposure gives you a 40% gain.
Result: +PHP 22,400 (USD 400) profit on your PHP 56,000 (USD 1,000) stake—before fees.

Final Advice

Before investing, it’s crucial to carefully compare brokers’ fees, platforms, and conditions, as they can significantly impact your returns. Choosing between spot buying and CFDs should depend on your financial goals, the risks you’re willing to take, and your investment timeframe. For more details and to find the best platform for your needs, consult the broker comparison available further down the page.

Our 7 tips for buying China Banking stock

The latest news about China Banking

China Banking Corporation reported strong first-quarter 2024 growth, recording a 17% increase in net income year-on-year. According to the bank's disclosure to the Philippine Stock Exchange this week, net income reached a record PHP 5.9 billion, primarily driven by robust loan portfolio growth and higher interest margins. These solid fundamentals reinforce confidence in the company's operational performance and long-term sustainability, signaling potential for continued shareholder value appreciation in the local market.

China Banking Corporation is advancing digitalization through new technology investments and expanded digital services. The company confirmed the successful rollout of enhanced mobile banking features and partnerships with major digital payment providers in the Philippines. These initiatives are designed to capture the growing digital-savvy customer segment and improve transaction efficiency, positioning China Bank as an innovator in retail banking services and responding directly to evolving market demands in the country.

Dividends declared this quarter indicate management’s commitment to shareholder returns and financial stability. On May 31, China Bank approved a regular cash dividend payout of PHP 1.20 per share, offering a competitive yield compared to peers. This strategy highlights the bank’s solid capital position and ability to sustain dividend payments, an attractive factor for income-focused local investors and a sign of confidence in the company’s future earnings streams.

Fitch Ratings reaffirmed China Bank’s investment-grade rating with a stable outlook, citing sound asset quality and capitalization. In its recently published review, Fitch noted the bank’s prudent risk management practices, healthy liquidity profile, and resilience to macroeconomic challenges in the Philippines. The agency’s recognition strengthens international and local investor sentiment, supporting the bank’s access to capital markets and potentially lowering funding costs.

The Philippine banking sector’s regulatory environment remains supportive, with new BSP measures fostering growth and innovation. The Bangko Sentral ng Pilipinas (BSP) this week reiterated its commitment to digital transformation and financial inclusion, with policies that directly benefit players like China Bank. The regulator’s forward-looking stance on digital banking is expected to help established banks accelerate product development and widen their market reach, further enhancing China Bank’s competitiveness in the rapidly evolving financial services landscape.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.