Positives of RRR Cut Are Likely to Be Offset by Rising Credit Quality Pressures as Economy Weakens
Following yesterday’s announcement of the Chinese central bank’s required reserve ratio, or RRR, cut of 50 basis points, effective July 5, we retain our fair value estimates for the Chinese banks we cover, as the positives of liquidity injections are largely offset by downward pressures on credit quality, in our view. Chinese banks under our coverage are trading at three-year lows on our valuation level of 0.4-0.8 times forward price/book, except for China Merchants Bank. This is attributable to...
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.