Why Agricultural Bank Becomes the Champion of A-Shares Market Value? It Benefits from the Rise in Banking Sector and High Profitability among the "Big Four"
On August 6th, Agricultural Bank (SH601288, stock price 6.71 yuan, market value 235 billion yuan) topped the A-share market capitalization list. On that day, Agricultural Bank's stock price closed at 6.62 yuan, up by 1.22%, setting a new high since its listing. Meanwhile, Agricultural Bank (601288) reached a market value of 211 billion yuan, ranking first in A-share market capitalization.
On August 7th, the bank's stock price rose by 1.36%, with its total market value reaching 235 billion yuan.
According to Gu Houming, chief market expert at Shenhai Securities Institute, Agricultural Bank surpassed Industrial and Commercial Bank of China (ICBC) to become the champion of A-share market capitalization. From various operating indicators, both banks have their strengths. The driving force behind this result is that ICBC's H-shares have a larger capital base than Agricultural Bank, but the latter has more A-shares outstanding, which means it will surpass ICBC once its stock price rises to a certain level.
Yang DeLong, chief economist at Ping An Fund Management, pointed out that Agricultural Bank's market value surged due to the recent rise in banking stocks. Banking stocks are considered low-cost and have good operating performance, attracting investors seeking high dividends and stable returns.
Agricultural Bank Has a Thicker Buffer Than ICBC
From recent events, we can see that Agricultural Bank's stock price has been rising since 2023, up by 145%. This is driven by the bank's strong profitability and stable dividend payments.
"Since 2025, banking stocks have performed well, which has driven the entire banking sector to a higher level." Yang DeLong said.
Funds Drive Bank Stocks Up
"Banking stocks have been rising continuously since last year, mainly due to changes in market sentiment. When the market adjusts, banks are more resistant to risks and have a stronger capital base. This has led to an increase in bank stock prices."
According to Lin Yingqi, analyst at Zhongcai Securities, the banking sector is the largest industry in the Shanghai-Shenzhen Stock Connect Index (accounting for 13%), while public funds account for only 2%. As a result, banks are more likely to benefit from increases in bank stock prices.