[ET Net News Agency, 20 October 2020] Morgan Stanley lowered its target price for China
Everbright Bank (CEB)(06818) to HK$4.4 from HK$5 and maintained its "overweight" 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 CEB sees less policy impact on its prudent planning and retail orientation.
The bank has seen across the board improvement in fundamentals with consistent and steady
development of retail business and continuous risk digestion. It was undervalued by the
market due to management's low profile, Morgan thinks. (KL)