Report
UOB
Eric Wang Zhen ...
  • Jayson Kong

Banking - PBOC puts Chinese banks on the spot again

Already wrestling a growth slowdown in 2019, we expect the Covid-19 epidemic to
pile further pressure on China’s soft macro environment and weigh on banks’ asset
quality. Meanwhile, the PBOC’s call for banks to support the real economy may
potentially come at the expense of sector earnings. We believe poor fundamentals of
unlisted small banks represent the weakest link in the banking system, and rising
default risk has not been fully discounted by the market. Maintain UNDERWEIGHT;
top BUY is CMB (3968 HK).
Underlyings
Bank of Ningbo (A)

Bank of Ningbo is engaged in taking in public savings; granting loans; handling domestic settlements; handling discount of negotiable instruments; issuance of financial bonds; acting as an agent for the issue and underwriting of government bonds; buying and selling government bonds; inter-bank funding; providing guarantees; acting as an agent for accounts receivable and payable, and insurance; provision of safety-deposit box service; commission loan operations; foreign exchange deposit, loan and remittance; undertaking foreign currency exchange; international settlement, foreign exchange dealings and borrwings and providing foreign exchange guarantees.

China Construction Bank (H)

China Merchants Bank

Chongqing Rural Commercial Bank Co Ltd

ICBC 1398 HK

Ping An Bank (A)

Ping An Bank is providing commercial banking services approved by Bank of China. Co is engaged in the offering of company loans, deposits, trade finance, company wealth management, and company intermediary services; providing personal loans, deposits, bank cards, personal wealth management services, and other personal intermediary services; local and foreign currency tradings; bond investments and other money market operations; and providing central management on non-performing assets, equity investments and nonclassifiable assets, liabilities, revenues and expenditures. As of Dec 31 2013, Co. had total assets of RMB1,891,741,000,000 and total deposits of RMB1,667,791,000,000.

Provider
UOB
UOB

Analysts
Eric Wang Zhen

Jayson Kong

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