# China Merchants Bank (600036.SHG)

Canonical: https://gigainvestors.com/s/600036.SHG

Analysis as of: 2026-10-16T07:33:35.658Z. Financial observations: FY2015–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: CNY 42.66 per share; close as of 2026-10-15.

Estimated value: low CNY 90.43 per share, central CNY 113.04 per share, high CNY 150.72 per share. Buy at or below the central value CNY 113.04 per share. Valuation as of 2026-10-16T07:33:35.658Z; scenarios are not confidence intervals.

Expected annual return: 16.6% at the stated quote. About 16.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

- Financial history: 10 years

- Profitable years in the last ten: 10

- Required profitable years: 9

- Return on common equity variation (informational): 0.09×

Chart: Net income; fiscal year observations.

- FY2016: CNY 62B

- FY2017: CNY 70B

- FY2018: CNY 79B

- FY2019: CNY 91B

- FY2020: CNY 96B

- FY2021: CNY 116B

- FY2022: CNY 138B

- FY2023: CNY 147B

- FY2024: CNY 148B

- FY2025: CNY 150B

### moat: pass

- Tangible common book per share

- Parent-total proxy for preferred equity and common earnings

- Bank / P&C ROTE, median of available years: 14.4%

- Required median return: 12.0%

- Return uses tangible common equity: Yes

- Bank ROTE, second-lowest year: 12.4%

- Years with reported combined ratio: 0

Chart: Return on tangible common equity; fiscal year observations.

- FY2016: 16.0%

- FY2017: 16.6%

- FY2018: 15.1%

- FY2019: 15.4%

- FY2020: 13.6%

- FY2021: 13.8%

- FY2022: 14.9%

- FY2023: 13.8%

- FY2024: 12.3%

- FY2025: 12.4%

### economics: pass

- Tangible common book per share

- Parent-total proxy for preferred equity and common earnings

- Book value per share + reinvested dividends, annualized return: 17.8%

- Book return interval: 10 years

- Starting book value per share: CNY 13.87

- Ending book value per share: CNY 45.91

Chart: Annual book + dividend return; fiscal year observations.

- FY2016: 15.9%

- FY2017: 14.3%

- FY2018: 25.6%

- FY2019: 18.9%

- FY2020: 24.7%

- FY2021: 24.2%

- FY2022: 12.6%

- FY2023: 20.3%

- FY2024: 18.6%

- FY2025: 4.6%

### management: pass

- Tangible common book per share

- Parent-total proxy for preferred equity and common earnings

- Diluted shares, 10-year annual growth: 0.5%

- Diluted shares, 5-year annual growth: 0.6%

- Share growth excluding flagged crisis recapitalisations: 0.5%

- Five-year share growth excluding flagged crisis recapitalisations: 0.6%

- Flagged crisis recapitalisations: 0

- Book created / earnings retained after dividends and buybacks: 1.14×

- Book value created per share: CNY 32.04

- Earnings retained per share after dividends and buybacks: CNY 28.23

Chart: Shares (first year = 100); fiscal year observations.

- FY2015: 100

- FY2016: 101

- FY2017: 100

- FY2018: 103

- FY2019: 102

- FY2020: 102

- FY2021: 102

- FY2022: 105

- FY2023: 104

- FY2024: 105

- FY2025: 105

### accounting: pass

- Financial accounting warning count: 0

- Known restatement years: 0

## Holders

## Price story

Down 21% since Oct 2021 · net income +1.2%

Story as of 2026-10-16T09:59:56.817Z; price observation 2026-10-15.

The price assumes profits shrink 0.6% a year forever

### Net income · FY2025

net income +1.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 62B 

- FY2017: CNY 70B 

- FY2018: CNY 79B 

- FY2019: CNY 91B 

- FY2020: CNY 96B 

- FY2021: CNY 116B 

- FY2022: CNY 138B 

- FY2023: CNY 147B 

- FY2024: CNY 148B 

- FY2025: CNY 150B 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in regional banking; annual sales are CNY 337.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:35.658Z); FY2025: revenue 337532000000.

### Why customers stay

It earns 14.4% on shareholders’ money, excluding intangible assets.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:35.658Z); 10-year return on tangible equity observations [[2016,0.15980405784566595],[2017,0.1662188354492766],[2018,0.15143738939836549],[2019,0.1541442851492646],[2020,0.13590830652549052],[2021,0.13846490846903947],[2022,0.1487942246985562],[2023,0.1383924230710049],[2024,0.12267226826844702],[2025,0.1241520302499723]]; median 0.14362956658379783. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:35.658Z); Dividend observations: [[2016,17402000000],[2017,18663000000],[2018,22844000000],[2019,25377000000],[2020,32087000000],[2021,35458000000],[2022,43622000000],[2023,48390000000],[2024,55315000000],[2025,61752000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 44.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600036.SHG SharesStats.PercentInsiders = 44.708 percentage points; cache date 2026-10-16.

### What the price says

The price assumes profits shrink 0.6% a year forever.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:35.658Z); Price 42.66; FX 1; original perpetual distributable cash 4.521548433020417; discount 0.1; growth -0.005990352391477188. Same book-value model and 4× ceiling; no ten-year operating fade applies. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 17.86 per share

- 2016-11: CNY 18.55 per share

- 2016-12: CNY 17.60 per share

- 2017-01: CNY 19.00 per share

- 2017-02: CNY 19.44 per share

- 2017-03: CNY 19.17 per share

- 2017-04: CNY 19.13 per share

- 2017-05: CNY 22.42 per share

- 2017-06: CNY 23.91 per share

- 2017-07: CNY 25.57 per share

- 2017-08: CNY 26.75 per share

- 2017-09: CNY 25.55 per share

- 2017-10: CNY 27.10 per share

- 2017-11: CNY 28.99 per share

- 2017-12: CNY 29.02 per share

- 2018-01: CNY 33.94 per share

- 2018-02: CNY 30.30 per share

- 2018-03: CNY 29.09 per share

- 2018-04: CNY 29.33 per share

- 2018-05: CNY 28.78 per share

- 2018-06: CNY 26.44 per share

- 2018-07: CNY 28.39 per share

- 2018-08: CNY 28.29 per share

- 2018-09: CNY 30.69 per share

- 2018-10: CNY 28.91 per share

- 2018-11: CNY 28.55 per share

- 2018-12: CNY 25.20 per share

- 2019-01: CNY 29.21 per share

- 2019-02: CNY 31.74 per share

- 2019-03: CNY 33.92 per share

- 2019-04: CNY 34.36 per share

- 2019-05: CNY 34.21 per share

- 2019-06: CNY 35.98 per share

- 2019-07: CNY 36.56 per share

- 2019-08: CNY 34.28 per share

- 2019-09: CNY 34.75 per share

- 2019-10: CNY 35.50 per share

- 2019-11: CNY 36.03 per share

- 2019-12: CNY 37.58 per share

- 2020-01: CNY 36.81 per share

- 2020-02: CNY 34.20 per share

- 2020-03: CNY 32.28 per share

- 2020-04: CNY 35.09 per share

- 2020-05: CNY 33.82 per share

- 2020-06: CNY 33.72 per share

- 2020-07: CNY 34.80 per share

- 2020-08: CNY 37.69 per share

- 2020-09: CNY 36.00 per share

- 2020-10: CNY 39.81 per share

- 2020-11: CNY 44.20 per share

- 2020-12: CNY 43.95 per share

- 2021-01: CNY 51.10 per share

- 2021-02: CNY 51.10 per share

- 2021-03: CNY 51.10 per share

- 2021-04: CNY 52.70 per share

- 2021-05: CNY 58.19 per share

- 2021-06: CNY 54.19 per share

- 2021-07: CNY 46.50 per share

- 2021-08: CNY 48.96 per share

- 2021-09: CNY 50.45 per share

- 2021-10: CNY 53.97 per share

- 2021-11: CNY 49.49 per share

- 2021-12: CNY 48.71 per share

- 2022-01: CNY 49.21 per share

- 2022-02: CNY 49.80 per share

- 2022-03: CNY 46.80 per share

- 2022-04: CNY 39.93 per share

- 2022-05: CNY 39.69 per share

- 2022-06: CNY 42.20 per share

- 2022-07: CNY 35.07 per share

- 2022-08: CNY 35.05 per share

- 2022-09: CNY 33.65 per share

- 2022-10: CNY 26.82 per share

- 2022-11: CNY 34.96 per share

- 2022-12: CNY 37.26 per share

- 2023-01: CNY 41.21 per share

- 2023-02: CNY 37.31 per share

- 2023-03: CNY 34.27 per share

- 2023-04: CNY 33.60 per share

- 2023-05: CNY 32.30 per share

- 2023-06: CNY 32.76 per share

- 2023-07: CNY 35.56 per share

- 2023-08: CNY 31.55 per share

- 2023-09: CNY 32.97 per share

- 2023-10: CNY 30.76 per share

- 2023-11: CNY 28.79 per share

- 2023-12: CNY 27.82 per share

- 2024-01: CNY 30.71 per share

- 2024-02: CNY 32.04 per share

- 2024-03: CNY 32.20 per share

- 2024-04: CNY 34.31 per share

- 2024-05: CNY 34.28 per share

- 2024-06: CNY 34.19 per share

- 2024-07: CNY 32.73 per share

- 2024-08: CNY 32.15 per share

- 2024-09: CNY 37.61 per share

- 2024-10: CNY 37.36 per share

- 2024-11: CNY 36.34 per share

- 2024-12: CNY 39.30 per share

- 2025-01: CNY 40.65 per share

- 2025-02: CNY 42.05 per share

- 2025-03: CNY 43.29 per share

- 2025-04: CNY 40.74 per share

- 2025-05: CNY 43.43 per share

- 2025-06: CNY 45.95 per share

- 2025-07: CNY 44.48 per share

- 2025-08: CNY 42.89 per share

- 2025-09: CNY 40.41 per share

- 2025-10: CNY 40.89 per share

- 2025-11: CNY 42.95 per share

- 2025-12: CNY 42.10 per share

- 2026-01: CNY 38.67 per share

- 2026-02: CNY 38.75 per share

- 2026-03: CNY 39.32 per share

- 2026-04: CNY 38.27 per share

- 2026-05: CNY 38.01 per share

- 2026-06: CNY 35.50 per share

- 2026-07: CNY 39.62 per share

- 2026-08: CNY 40.12 per share

- 2026-09: CNY 41.26 per share

- 2026-10: CNY 42.80 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 48.61 per share, central CNY 60.76 per share, high CNY 81.01 per share

- FY2017: low CNY 53.97 per share, central CNY 67.46 per share, high CNY 89.94 per share

- FY2018: low CNY 54.83 per share, central CNY 68.54 per share, high CNY 91.39 per share

- FY2019: low CNY 53.56 per share, central CNY 66.96 per share, high CNY 89.27 per share

- FY2020: low CNY 56.78 per share, central CNY 70.98 per share, high CNY 94.63 per share

- FY2021: low CNY 64.66 per share, central CNY 80.82 per share, high CNY 107.76 per share

- FY2022: low CNY 67.73 per share, central CNY 84.66 per share, high CNY 112.88 per share

- FY2023: low CNY 76.65 per share, central CNY 95.82 per share, high CNY 127.76 per share

- FY2024: low CNY 84.25 per share, central CNY 105.31 per share, high CNY 140.42 per share

- FY2025: low CNY 78.77 per share, central CNY 98.46 per share, high CNY 131.28 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:21.220Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations