Is China Merchants Bank (3968) Halal?

HKSE Financial Services China $1.2T
✗ NOT HALAL
Confidence: 95/100
China Merchants Bank (3968) is Not Halal under AAOIFI Standard 21 due to its classification in the Banks - Regional industry, which is excluded under Shariah screening. Companies operating in prohibited sectors such as conventional banking, insurance, alcohol, tobacco, and gambling are automatically excluded regardless of their financial ratios.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI Excluded — Banks - Regional ✗ NOT HALAL
DJIM Excluded — Banks - Regional ✗ NOT HALAL
MSCI Excluded — Banks - Regional ✗ NOT HALAL
S&P Excluded — Banks - Regional ✗ NOT HALAL
FTSE Excluded — Banks - Regional ✗ NOT HALAL

Financial Highlights

P/E Ratio
7.6
Forward: 6.9
EPS
$6.43
Dividend Yield
676.0%
Payout: 35.2%
P/B Ratio
1.0
Revenue
$334.9B
Growth: -1.8%
Beta
0.8
Average volatility

Profitability

Gross Margin 0.0%
Operating Margin 54.6%
Net Margin 51.4%
Return on Equity (ROE) 12.0%
Return on Assets (ROA) 1.2%

Cash Flow & Balance Sheet

Operating Cash Flow$447.0B
Free Cash Flow$412.1B
Total Debt$471.1B
Total Assets$12.2T

Price & Trading

Last CloseHKD 49.02
50-Day MAHKD 48.52
200-Day MAHKD 49.90
Avg Volume16.2M
Beta0.8
52-Week Range
HKD 39.85
HKD 56.75

About China Merchants Bank (3968)

CEO
Mr. Jiawen Peng
Employees
121,585
Sector
Financial Services
Industry
Banks - Regional
Country
China
Exchange
HKSE
Market Cap
$1.2T
Currency
HKD

China Merchants Bank Co., Ltd., together with its subsidiaries, provides various banking products and services. It operates through Wholesale Finance Business, Retail Finance Business, and Other Business segments. It offers current, demand, time, call, savings, notice, and renminbi accounts. The company also offers loan products include personal commercial real estate, consumption, housing, and car loans; loans to finance for studying abroad; micro-business loans; mortgage loans for equipment; joint guarantee, special guarantee, and housing mortgage loan; bank acceptance, discount, liquid capital, and fixed asset loans; and loans for vessels. In addition, it offers credit cards; insurance products; open-ended funds; discount and guarantees for commercial bills, redemption of commercial bills, and guaranteed discount for commercial acceptance bills; and financial consultation, debt financing underwriting, merger and acquisition financing, and equity financing and enterprise listing services. Further, the company provides forfeiting and risk participation, escrow, cross-border RMB clearing, and interbank services; and risk and financial management, cross-border RMB and oversea financing, international factoring and settlement, and trade finance services. Additionally, it offers financial leasing and guarantee, investment and wealth management, forex option and gold trading, forex express trading, international, offshore and private banking, custody, pension, and electronic banking services. The company also operates in Hong Kong, New York, London, Singapore, Luxembourg, and Sydney. The company was founded in 1987 and is headquartered in Shenzhen, China.

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Frequently Asked Questions

Is China Merchants Bank (3968) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), China Merchants Bank is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is China Merchants Bank's debt ratio?

China Merchants Bank's debt ratio is not available under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%.

What are China Merchants Bank's key financial metrics?

China Merchants Bank has a market capitalization of $1.2T, trailing P/E ratio of 7.6, and revenue of $334.9B. Return on equity stands at 12.0%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.