China Financial Daily:China Encourages M&A,Cash Divs &Share Repurchase by Listed Cos.
DB Research.
China Construction Bank Alert - Key takeaways from 1H15 analyst briefingDuring the 1H15 analyst briefing today, CCB’s management believes the bankhas limited, low-risk exposure to stock market and its asset quality risk shouldbe largely controllable given strict risk control imposed. Operationally, the bankdelivered strong growth in 1) infrastructure-related loans, up 11% yoy, makingup 74% of new corporate loans in 1H15 (1H14: 47%); 2) residential mortgageloans, up 18% yoy to account for 25% of total loans (1H14: 23.5%); 3) internetfinance business, with 94% of transactions executed electronically (1H14:87%). As our strategist expects accelerating fiscal expenditures to boostinfrastructure FAI, we believe CCB should be the key beneficiary of potentialfundamental improvement in China’s economy, given its leading marketposition in infrastructure projects. Buy maintained.
(Tracy Yu (+852) 2203 6191). For details please refer tohttp://pull.db-gmresearch.com/cgi-bin/pull/DocPull/1503-71AC/17990990/0900b8c08a1d8297.pdf .
China Minsheng Bank Alert - Key takeaways from 1H15 conference call.
In the post results conference call on 31 August 2015, the management teamof China Minsheng Bank (MSB) addressed market concerns on MSE lending,asset quality, asset allocation and deposit growth, and also provided updateson bank overall strategy. Management sees a turning point of the asset qualitytrend of its MSE lending portfolio to be around end-2015 or early-2016. Wemaintain Buy rating on MSB-H with a TP of HK$12.62.
(Tracy Yu (+852) 2203 6191). For details please refer tohttp://pull.db-gmresearch.com/cgi-bin/pull/DocPull/1503-71AC/17990990/0900b8c08a1d8ebf.pdf .
CPIC Alert - 1H15 - Key takeaways from analyst meeting.
We attended CPIC’s 1H15 analyst meeting this morning. The focus continuedto be on its P&C business. CPIC management appeared less optimistic aboutP&C business than peers, citing continuous challenges in achievingunderwriting profitability. Key takeaways are as followed:(Esther Chwei (+852) 2203 6200). For details please refer tohttp://pull.db-gmresearch.com/cgi-bin/pull/DocPull/1503-71AC/17990990/0900b8c08a1da88f.pdf .
PICC Group Alert - 1H15 - Key takeaways from analyst meeting.
We attended PICC Group and PICC P&C joint analyst briefing this morning. Themanagement appeared confident with the company outlook, stating that themarket has underappreciated PICC’s unique positioning in China’s insurancemarket. Key takeaways are as followed,(Esther Chwei (+852) 2203 6200). For details please refer tohttp://pull.db-gmresearch.com/cgi-bin/pull/DocPull/1503-71AC/17990990/0900b8c08a1db77c..pdf.