ICBC : Industrial and Commercial Bank of China (1398)

[Tiggerbee]

but how come rmb strengthen?

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ICBC is now trading at 5.4x PE, with 6% dividend. Looks like a good deal for annual ROE of 20% over the past 3 years. Any buddies got insights or vested into Chinese banks?

Hope to hear your views!

how come so cheap now? must have a reason..did u check yr data if is correct?

Chinese banks had corrected 10-20% in the recent sell down on liquidity fears. The PBOC had meant to punish the banks by tightening money supply for fueling the shadow banking biz in China. Now that the Chinese bank had been taught a lesson, PBOC had loosened the money supply tap again. However, this also meant that more Chinese banks will start to de -leverage and their earnings will potentially drop. The other negatives are bank earnings growth will slow with the property curbs and lower GDP growth target. And NPLs are also climbing.

If you like high yielding Chinese bank stocks, BOC HK will be a better choice.
http://www.aastocks.com/SC/News/HK6/0238...49335.html

You can find the ICBC bank data info link here :
http://www.aastocks.com/SC/stock/DetailQ...mbol=01398