[ET Net News Agency, 20 October 2020] Morgan Stanley lowered its target price for China
Minsheng Banking (01988) to HK$4.7 from HK$6.7 and maintained its "equal-weight" rating.
The research house believes the key concern on China banks has shifted from macro/NPL
risks to uncertainties from policy window guidance, which has reduced the chance of
excessive ROE at state-owned China banks when GDP growth and credit demand finally slows
in the future.
Morgan said Minsheng carries higher risks associated with larger exposure to SMEs and
private firms amid moderating economic growth and it is still in the risk digestion
process of previous aggressive lending. The bank is pending a clearer development
strategy. Its relatively lower NPL coverage ratio of 150% makes the bank subject to
provisioning pressure. (KL)
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01988 MINSHENG BANK
Nominal 
2.820 +0.010 (+0.356%) Others
20/10/2020 16:50
{I-bank focus}Morgan reduces Minsheng Bank (01988) to HK$4.7
| Remark: | Real time quote last updated: 25/04/2024 18:00 |
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