Shares of China’s five largest state-owned banks rose on Monday after quarterly net profit increased between 6.4% and 10.8%, marking the group’s fastest growth since 2021 or 2022. Industrial and Commercial Bank of China shares gained as much as 3.6%, while Agricultural Bank of China rose as much as 2%; China Construction Bank added as much as 2.3%. Stabilising net interest margins, the repricing of higher-cost deposits, steady asset quality, monetary support, mortgage interest subsidies and gains from bond investments supported earnings. The benefit from deposit repricing is fading in the second half, while weak credit demand, a slowing economy and emerging risks in technology and innovation-related lending remain challenges. Analysts said early margin recovery and stable credit costs could support a faster profitability rebound than at smaller domestic lenders. Equity investments linked to major chip-sector initial public offerings also increased market volatility.