[ET Net News Agency, 4 December 2018] CLSA lifted its target price for Chongqing Rural
Commercial Bank (CQRC)(03618) to HK$4.7 from HK$4.3 and maintained its "underperform"
rating.
The research house said Chinese banks are set to be confronted by pressure in NIM and
asset quality in 2019 as Beijing asks for more and cheaper loans to support the private
sector. The industry is paying a price of the policy mission.
CLSA said CQRC would see an obvious uptick in NPL ratio and is likely to go up further
in 2019. (KL)