[ET Net News Agency, 6 September 2018] CLSA said one consistent message from Chinese
banks' interim briefings is the role expected of them to support small and micro
businesses and infrastructure.
Despite guidance for a stable NPL ratio, the social duty will raise questions about
asset quality and NIM. Capital is also under the spotlight with some surprise dividend
comments. The sector lacks catalysts to perform. But so does the overall market in the
macro slowdown.
CLSA kept its positive bias for the Big 4. The research house tweaked its target prices
for the counters under coverage following earnings revisions.
Name Target Price Rating
-------------------------------------------------------
ABC (01288) HK$4.10 from HK$4.20 Outperform
BOC (03988) HK$4.10 from HK$4.50 Buy
CCB (00939) HK$8.40 from HK$8.50 Buy
ICBC (01398) HK$7.50 Buy
Bocom (03328) HK$5.50 from HK$5.70 Underperform
CMB (03968) HK$26.20 from HK$26.60 Sell
Minsheng (01988) HK$5.40 Sell

(KL)