Quote | Super Quote
Super Quote   |   Detail Quote   |   Interactive Chart   |   Real-Time Chart   |   Transaction   |   Related News   |   Related Securities   |   Company Information   |   Dividend Records   |   Short Sell
01988 MINSHENG BANK
RTNominal down7.630 -0.060 (-0.780%)
Others

03/03/2017 15:54

[I-bank focus]DB downgrades Minsheng Bank (01988) to "sell"

[ET Net News Agency, 3 March 2017] Deutsche Bank downgraded China Minsheng Bank
(MSB)(01988) to "sell" from "hold" on shadow banking risks and reliance on wholesale
funding, and lowered its price target to HK$7.31 from HK$7.91.
The research house said Chinese banks have rallied 33% in the past 12 months, on higher
rates, industrial reflation and fund inflows. With implied NPL ratio falling by 1ppt yoy
to 6%, current multiples should have largely priced in stronger nominal GDP growth and
corporate profitability.
However, the market has overlooked the growing structural issues, i.e. rapidly growing
system leverage and weakening of banking system funding. DB expects slower credit growth
and intensified financial deleveraging in 2017, which may represent headwinds.
It expects the escalating financial deleveraging efforts to weigh valuation of MSB while
benefit ICBC (01398), due to different balance sheet structure and risk profile. More
specifically, higher market rates would benefit ICBC as interbank net lender, but it would
compress NIM for MSB who is reliant on wholesale funding (30-35% of liabilities). Tighter
shadow banking regulations would impose capital and earnings risks for MSB due to higher
shadow banking exposure (20-25% of assets). (KL)

Remark: Real time quote last updated: 17/08/2017 17:29
  Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service
A Member of HKET Holdings
Customer Service Hotline:(852) 2880 7004     Customer Service Email:cs@etnet.com.hk
 
Copyright 2012 ET Net Limited. http://www.etnet.com.hk ET Net Limited, HKEx Information Services Limited, its Holding Companies and/or any Subsidiaries of such holding companies, and Third Party Information Providers endeavour to ensure the availability, completeness, timeliness, accuracy and reliability of the information provided but do not guarantee its availability, completeness, timeliness, accuracy or reliability and accept no liability (whether in tort or contract or otherwise) any loss or damage arising directly or indirectly from any inaccuracies, interruption, incompleteness, delay, omissions, or any decision made or action taken by you or any third party in reliance upon the information provided. The quotes, charts, commentaries and buy/sell ratings on this website should be used as references only with your own discretion. ET Net Limited is not soliciting any subscriber or site visitor to execute any trade. Any trades executed following the commentaries and buy/sell ratings on this website are taken at your own risk for your own account.