Global banking stocks are in a massive, massive, massive, massive bull market.

Since 2021, mainstream Chinese bank stocks have posted remarkably strong gains. Especially regional banks operating in economically vibrant areas—such as Bank of Jiangsu and Bank of Chengdu—have performed exceptionally well. Two representative bank-index ETFs illustrate this trend: the Hong Kong Banks LOF has surged over 130%, while the Huabao Bank ETF has risen approximately 50%. In yesterday’s article comments section, a reader shared insights on value-oriented fund managers—including Yang Jinghan and the Huatai-P柏瑞 New Financial & Real Estate Fund. Yet today, virtually all high-performing financial and real estate funds hold almost no real estate stocks; instead, they are predominantly invested in bank stocks—with insurance and securities firms serving as secondary holdings. Only this composition could explain their outstanding performance. The ‘Big Four’ state-owned banks have been pushed to their limits. Starting this week, heightened volatility hit bank stocks—alongside PetroChina/PetroChina (the ‘Two Oil Giants’) and coal stocks—driven by hawkish remarks from Fed Governor Christopher Waller over the weekend, with these sectors collectively acting as hedges against broader market uncertainty. Coal stocks tumbled yesterday—having risen too far, and further coal-price increases may trigger regulatory intervention (‘A4-paper’ restrictions). Today, despite surging oil prices in U.S. markets overnight, the ‘Two Oil Giants’ plunged sharply—purely irrational behavior. Only bank stocks—especially the Big Four state-owned banks—stepped up alone to stabilize the market. (Storage remains indispensable.) Yesterday, Bank of China hit an all-time high in share price. And since 2021, each of the Big Four state-owned banks has more than doubled in value. It’s truly fascinating: six years ago, the dominant narrative was China’s unstoppable consumption upgrade—a grand epic driven by its vast population. Today, that story has been replaced by concerns over peaking population and deflationary pressures—and yet, those very ‘low-quality’ businesses have delivered a five-year bull market. Back then, a popular and widely adopted investment strategy was ‘A-share consumer stocks + U.S. tech stocks.’ These days, it has evolved into ‘A-share dividend-yield stocks + U.S. tech stocks.’ While A-share bank stocks have surged, global banking stocks have concurrently entered a major bull market—whether listed in Hong Kong, Europe, Japan, or the U.S., the trend is unmistakable. A global banking stock bull market—massive, massive, massive, massive. Although banking lacks the clear, globally synchronized industrial tailwinds seen in tech or liquor sectors, equity prices across major global banks remain highly correlated. 1. Top performer: Italy’s UniCredit Bank—its total return (including dividends) stands at a staggering 10-fold gain. We all know Europe’s economy has been sluggish, largely absent from the current AI revolution, and mired in crises—from immigration challenges to the Russia-Ukraine conflict. Yet look at its banking stocks: Spain’s Santander, the Netherlands’ ING Group, Germany’s Deutsche Bank, Switzerland’s UBS Group, and France’s BNP Paribas—all have delivered solid share-price performance. HSBC, listed in Hong Kong and sharing identical shareholder rights with its UK parent, has soared over 450%. Compared to the U.S. market’s heavy concentration of growth-oriented tech stocks, Europe lacks world-class tech companies—but does host several globally operating giants in consumer staples and finance. Thus, in Western markets, indices like the Nasdaq and S&P 500 represent growth, whereas European equities broadly reflect value investing. 2. U.S. financial stocks aren’t top performers here—but Canada’s Royal Bank of Canada and Toronto-Dominion Bank, along with Australia’s Commonwealth Bank, have posted equally impressive gains. 3. Asian banking stocks are also in a full-blown bull market. Japan’s Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group have surged roughly 8-fold and 7-fold respectively. South Korea’s KB Financial Group has gained 400%—not matching Samsung or SK Hynix, but still highly profitable. Singapore’s DBS Group has risen 350%. As for the Big Four Chinese banks listed in Hong Kong—Agricultural Bank of China, Bank of China, China Construction Bank, and Industrial and Commercial Bank of China—their gains go without saying. Yet compared with peers above, they appear relatively modest. Globally speaking, aside from India—which has suffered a major bear market over the past two years, dragging down share prices—virtually every prominent, recognizable bank stock worldwide is in a bull market.

Deutsche Bank’s latest macro-strategy warning: The world is returning to a synchronized tightening cycle; markets may be underestimating the extent of rate hikes, and this round of monetary tightening will be more hawkish than in 2022!

Investor Insider | Shou Ziwei Deutsche Bank warned on Monday that, as the world re-enters a synchronized monetary tightening cycle, investors may be underestimating how high interest rates will ultimately need to rise. Henry Allen, Deutsche Bank’s macro strategist, noted that the U.S. Federal Reserve, the European Central Bank, and the Bank of Japan have all raised rates within the past two weeks—marking the official return of a globally synchronized hiking cycle. Allen explained that central banks’ current response is more aggressive than during the 2021–2023 inflation episode, because policymakers were previously criticized for acting too slowly. In contrast to 2022—when both the Fed and the ECB only began hiking after inflation had already exceeded 8%—this cycle commenced with inflation running at less than half that level. Henry Allen, Deutsche Bank’s macro strategist, added that although markets have already priced in further tightening, several credible arguments support even larger rate hikes. First, looking at commodity prices: Allen pointed out that Brent crude oil is trading near $100 per barrel, and the broad-based rally in commodities has yet to be fully reflected in official inflation data or surveys. Energy shocks often generate second-round effects, potentially transmitting price pressures across wider segments of the economy. Second, examining central bank behavior: Allen observed that central banks frequently overcorrect in response to the previous crisis—and their current stance is already more hawkish than in 2022. In 2022, central banks waited until inflation surpassed 8% before initiating rate hikes.

Deutsche Bank raises Kronos Worldwide stock target to USD 9.00

Oct 1, 2026

Deutsche Bank raised its stock target for Kronos Worldwide to USD 9.00 with a Buy rating following strong Q2 2026 results. The company exceeded expectations with USD 558.10 million in revenue and reported improved titanium dioxide sales volumes.

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