China Banks: Opportunities among the credit quality challenges
Report by Galliano's Financials Research
Victor Galliano screens 10 China banks, including the “Big Four”, using his proprietary database to build bank metrics up-to the 2Q24 results season. He examines the banks’ core profitability and their credit quality metrics to better identify banks that are attractive value, have good earnings growth prospects and have the potential to deliver healthy returns, even in the face of a potentially tough credit quality cycle in China. China Construction Bank is a core GEM bank Buy for its deeply discounted valuations and strong balance sheet; Ping An Bank is the deep value contrarian pick; China Minsheng Banking is Victor’s fundamental Sell.