1398.HK - Industrial and Commercial Bank of China Limited

HKSE - HKSE Delayed Price. Currency in HKD
5.890
+0.040 (+0.68%)
At close: 4:08PM HKT
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Previous Close5.850
Open5.860
Bid5.880 x 0
Ask5.890 x 0
Day's Range5.800 - 5.920
52 Week Range4.810 - 6.190
Volume159,005,950
Avg. Volume168,561,016
Market Cap2.281T
Beta (5Y Monthly)1.23
PE Ratio (TTM)6.31
EPS (TTM)0.934
Earnings DateN/A
Forward Dividend & Yield0.28 (4.83%)
Ex-Dividend DateJun 25, 2019
1y Target Est7.53
  • The $680 Million Question of What the Boss Knew
    Bloomberg

    The $680 Million Question of What the Boss Knew

    (Bloomberg Opinion) -- Anil Ambani, the younger brother of Asia’s richest man, faces a $680 million legal test to answer one and only one question: Just what did he know about what his employees were doing on his behalf? Other Indian tycoons will take an abiding interest in his defense.The $680 million is the amount Industrial & Commercial Bank of China Ltd. is seeking to recover from the former Indian billionaire by invoking what they say is a personal guarantee he gave in 2012 to secure a $925 million loan for Reliance Communications Ltd., his mobile services firm that’s now in bankruptcy. Ambani, whose older sibling Mukesh controls Reliance Industries Ltd., India’s most valuable company, claims he never knowingly provided any guarantee.In his version, he had only authorized his employees to furnish a non-binding “personal comfort letter” to lenders, including ICBC, China Development Bank and the Export-Import Bank of China. Somehow, that letter of comfort morphed into what the banks now argue to be an iron-clad guarantee under English law. “A truly remarkable feature of Mr. Ambani’s case,’’ London Judge David Waksman said in his order Monday, “is that he has himself proffered no explanation as to why he should have been deceived in this way.”As to how personal assets were put at risk unbeknownst to the boss until RCom defaulted in 2017, the order noted that Ambani’s lawyer had argued that his client's “position was that ‘he hasn’t got a clue’ how all of this came about.” Judge Waksman stopped short of awarding the summary judgment requested by ICBC, though not before characterizing Ambani's evidence as “inexplicably incomplete, implausible and highly unlikely.”A trial will commence next year. Pending the verdict, the court may ask some or all of the claim to be deposited with it.Ambani’s representative focused on the the judge’s decision to dismiss the banks’ application for a summary judgment. “Mr. Ambani has contested the proceedings and put up a strong legal defense, and will continue to contest the proceedings and seek leave to defend, without any conditions as to making of deposits or payments being imposed,” the representative said in a statement, according to Bloomberg News.This is the younger Ambani’s second brush with the pitfalls of personal guarantee. Earlier this year, he managed to avoid a three-month prison term when his elder brother showed up just in time to settle the $80 million claim of Ericsson AB. The Swedish telecom equipment maker had obtained a contempt-of-court order to put Ambani in jail if the payment – which he had personally guaranteed – wasn’t received by March 19.Other Indian business families should treat Ambani’s travails as a cautionary tale.When India’s economy was booming, and firms were greedy to use leverage to grow, many of their controlling shareholders liberally gave out personal guarantees to lenders. But the rosy assumptions behind aggressive, debt-fueled expansion have come unstuck for many borrowers in an economy that has slowed down sharply. The Ruia family recently lost its crown jewel — a 10 million-tons-a-year integrated steel plant in western India — to ArcelorMittal.Even here, the former asset owners had backed their borrowings with personal guarantees, and State Bank of India, the main lender, had even made an attempt to enforce them. With Mittal’s $6 billion check in the bank, that recovery may have now become a moot point. But from Dec. 1, personal guarantees on corporate loans will be adjudicated under Indian bankruptcy law. That will put a healthy fear in the minds of Indian businessmen about borrowing too recklessly. Their own assets could end up getting liquidated together with those of their companies.As for Ambani, he’ll get his day in an English court to prove his lack of awareness. The bar is high, though. “I consider it extremely unlikely that his role was really limited to simply chairing board meetings with little or no interest or role in what RCom was doing, especially in the context of a major refinancing which was needed urgently,” Judge Waksman noted.This has all the ingredients of an engaging courtroom drama.To contact the author of this story: Andy Mukherjee at amukherjee@bloomberg.netTo contact the editor responsible for this story: Patrick McDowell at pmcdowell10@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Investors Who Bought Industrial and Commercial Bank of China (HKG:1398) Shares Three Years Ago Are Now Up 29%
    Simply Wall St.

    Investors Who Bought Industrial and Commercial Bank of China (HKG:1398) Shares Three Years Ago Are Now Up 29%

    One simple way to benefit from the stock market is to buy an index fund. But if you choose individual stocks with...

  • Reuters

    UPDATE 2-China cbank warns high financial risks amid rising economic headwinds

    China needs to resolve outstanding financial risks, and must counter risks from "abnormal" market fluctuations that stem from external shocks, said the central bank on Monday, as Beijing prioritises financial stability amid increasing challenges. Financial markets are highly sensitive to global trade situations and rising uncertainties in global liquidity, said the People's Bank of China (PBOC) in its annual financial stability report, adding that it will step up real-time supervision on stock, bond, foreign exchange markets to prevent cross-sector risk contamination. Beijing has stepped up daily supervisions and assessment on potential "black swan" and "grey rhino" events that may occur in the future and has prepared contingency plans, as downward pressure on the economy rises, said the PBOC.

  • Is It Time To Consider Buying Industrial and Commercial Bank of China Limited (HKG:1398)?
    Simply Wall St.

    Is It Time To Consider Buying Industrial and Commercial Bank of China Limited (HKG:1398)?

    Industrial and Commercial Bank of China Limited (HKG:1398) saw a double-digit share price rise of over 10% in the past...

  • Ex-Billionaire Dragged to Court for $680 Million Unpaid Loan
    Bloomberg

    Ex-Billionaire Dragged to Court for $680 Million Unpaid Loan

    (Bloomberg) -- Three Chinese banks are suing the brother of Asia’s richest man in a London court for failing to pay back $680 million in defaulted loans.The Industrial & Commercial Bank of China Ltd., China Development Bank and the Export-Import Bank of China agreed to loan $925.2 million to Anil Ambani’s firm Reliance Communications Ltd. in 2012 on condition that he provide a personal guarantee, ICBC’s lawyer Bankim Thanki told the court. Some repayments were made by the wireless carrier but in February 2017, it defaulted on its payment obligations.The embattled Indian tycoon says that while he agreed to give a non-binding “personal comfort letter,” he never gave a guarantee tied to his personal assets -- an “extraordinary potential personal liability.” He’s the brother of Mukesh Ambani, who’s worth $56 billion and is the wealthiest man in Asia and 14th richest in the world. Anil, on the other hand, has seen his personal fortune dwindle over recent years, losing his billionaire status.ICBC “failed and continues to fail, to distinguish between Mr. Ambani on the one hand, and the company to whom the loans were being extended...on the other,” Ambani’s lawyer Robert Howe said in a court filing.Anil Ambani was chairman of Reliance Communications, which fell into administration earlier this year. His wider telecommunications-to-infrastructure empire Reliance Group has continued to struggle under a mountain of debt. As of July, four of its biggest units, excluding the phone company, had about 939 billion rupees ($13.2 billion) of debt, Bloomberg reported in September.Anil Ambani was caught up in a similar case earlier this year, when India’s Supreme Court threatened him with prison after Reliance Communications failed to pay to pay 5.5 billion rupees to Ericsson AB’s Indian unit. The judges gave him a month to find the funds, and his brother, Mukesh, stepped in to make the payment.The brothers’ relationship has been fraught since their father’s death left behind a vast empire that was split between them. While Mukesh’s oil and petrochemicals businesses have flourished, Anil’s assets dwindled.According to a court filing, Anil went to Beijing in the winter of 2011 to negotiate the loan with ICBC’s former Chairman Jiang Jianqing directly. The lenders sought a share pledge before granting the loans, but the legal dispute centers on whether Ambani or one of his associates went on to provide a personal guarantee as security.Hasit Shukla, Reliance’s commercial and treasury head, signed a personal guarantee on Ambani’s behalf by power of attorney when the loan was set up seven years ago, Thanki said. But Ambani didn’t give Shukla the authority to sign for him, making the guarantee non-binding, his lawyer Robert Howe said in written submissions.“Mr. Ambani’s position is that the claim made by ICBC in relation to his alleged personal guarantee for loans to RCOM is without merit,” a spokesman for the tycoon said in an email.Industrial & Commercial Bank is the sole claimant in the London case, and is representing itself and the other two lenders.“This is a straightforward debt claim to recover outstanding loans made to RCOM in good faith, and secured by a personal guarantee given by Mr. Anil Ambani,” the banks said in a statement.In Thursday’s court hearing, ICBC’s lawyers asked Judge David Waksman for an early ruling or a conditional order requiring Ambani to pay into court the unpaid sum and interest under the facility agreement. Ambani has declined to give any evidence of his wealth, they said.(Adds details of brother’s relationship in 6th paragraph.)To contact the reporters on this story: Ellen Milligan in London at emilligan11@bloomberg.net;Jonathan Browning in London at jbrowning9@bloomberg.netTo contact the editors responsible for this story: Anthony Aarons at aaarons@bloomberg.net, Christopher ElserFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • What Kind Of Shareholders Own Industrial and Commercial Bank of China Limited (HKG:1398)?
    Simply Wall St.

    What Kind Of Shareholders Own Industrial and Commercial Bank of China Limited (HKG:1398)?

    If you want to know who really controls Industrial and Commercial Bank of China Limited (HKG:1398), then you'll have...

  • What Did Industrial and Commercial Bank of China Limited's (HKG:1398) CEO Take Home Last Year?
    Simply Wall St.

    What Did Industrial and Commercial Bank of China Limited's (HKG:1398) CEO Take Home Last Year?

    Shu Gu became the CEO of Industrial and Commercial Bank of China Limited (HKG:1398) in 2016. This report will, first...

  • Cango Inc. (CANG) Q2 2019 Earnings Call Transcript
    Motley Fool

    Cango Inc. (CANG) Q2 2019 Earnings Call Transcript

    CANG earnings call for the period ending June 30, 2019.

  • China's banks face earnings squeeze due to rate reform, trade war uncertainty
    Reuters

    China's banks face earnings squeeze due to rate reform, trade war uncertainty

    BEIJING/SHANGHAI (Reuters) - China's banks face pressure on earnings and asset quality in the coming months as interest rate reforms squeeze margins and a Chinese-U.S. trade war adds to economic uncertainty. Three of the nation's top listed banks this week each reported a profit rise of nearly 5% in the first half of the year, but warned they faced headwind. "The trade war causes uncertainty, and there is downward pressure on the economy," Gu Shu, president of the world's largest commercial lender, Industrial and Commercial Bank of China (ICBC), told a news conference on Thursday.

  • China AI Startup to File for Hong Kong IPO Soon Despite Protests
    Bloomberg

    China AI Startup to File for Hong Kong IPO Soon Despite Protests

    (Bloomberg) -- Chinese artificial intelligence startup Megvii is filing documents soon for a Hong Kong initial public offering that could raise as much as $1 billion, people familiar with the matter said, proceeding despite a market downturn spurred by pro-democracy protests across the financial hub.The owner of facial-recognition platform Face++ plans to submit an IPO filing to the Hong Kong Stock Exchange as soon as Friday, one of the people said, asking not to be named because the matter is private. Megvii declined to comment.Megvii is moving forward even as other companies pump the brakes on their Hong Kong listing ambitions, wary of months of protests that have gripped the city. Alibaba Group Holding Ltd., a backer of Megvii’s, is among those that are gunning for a Hong Kong listing but have held back to gauge investors’ reception.Megvii’s offering may face particular challenges. It would be the first in a coterie of Chinese AI companies to go public, raising money that would help further China’s effort to lead the sector by 2030. Donald Trump’s administration has raised the alarm about China’s ambitions in technology, which may erode the interest of U.S. money managers in the country’s AI startups."It’s a bit political," said Mark Tanner, founder of Shanghai-based research and marketing company China Skinny. “Trump’s big concern is that China has the aspiration to be the leader in AI.”Megvii’s filing will kick off the formal process for an IPO, though it could be months before its actual debut. Megvii competes with SenseTime Group Ltd. -- also backed by Alibaba -- in facial and object recognition technology and Internet of Things software.The seven-year-old outfit now provides face-scanning systems to companies from iPhone-maker Foxconn Technology Group to Lenovo Group Ltd. and Ant Financial, the payments giant that supports Alibaba’s e-commerce business. Its facial recognition technology has provided verification services to more than 400 million people, Megvii said in a statement in January.Beyond commerce, the company is also building software for sensors and robots. And the Chinese government is a client: Megvii’s AI technology has been used by authorities in more than 260 cities and helped police arrest more than 10,000 people, it said in January. The company last raised $750 million in a Series D financing round in May from investors including China Group Investment, ICBC Asset Management (Global), Macquarie Group and a unit of the Abu Dhabi Investment Authority. Its other backers include Boyu Capital, Ant, SK Group, Foxconn, Qiming Venture Partners and Sinovation Ventures.Megvii could have a first mover’s advantage."IPOs have been pretty disappointing in the past few months, but since AI is a hot category at the moment it could gain more traction," said Tanner.(Adds analyst comment in the fifth paragraph.)To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Edwin Chan, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Leadership shuffle at Bank of Jinzhou raises questions about ICBC-led 'investment' in July, as credit drought wrecks damage on regional lenders
    South China Morning Post

    Leadership shuffle at Bank of Jinzhou raises questions about ICBC-led 'investment' in July, as credit drought wrecks damage on regional lenders

    Bank of Jinzhou has appointed Guo Wenfeng, 47, to take over the post of governor at the mid-sized regional lender, part of a personnel shake-up affecting half a dozen senior positions, according to filings and news reports since Friday.Guo will be transferred from a current position with Industrial and Commercial Bank of China (ICBC), according to a Hong Kong stock exchange filing. Three other senior appointments will also involve personnel currently with ICBC, according to reports.Analysts said the leadership reshuffle may show that a stake purchase last month led by ICBC was actually a bailout for the lender based in Liaoning province in northeastern China.Bank of Jinzhou grabbed attention in June, after it became the first regional commercial bank to receive credit enhancement from China's central bank.Bank of Jinzhou gets Chinese state backing as ICBC and other financial institutions buy more than 17.3 per cent stake in itEarlier this year Ernst & Young Hua Ming LLP and Ernst & Young resigned as auditors for the bank, citing concerns over loans it had made to institutional customers.The bank's Hong Kong shares have been suspended from trade since April.In late July, three state-owned financial institutions bought a combined 17.3 per cent of shares in the Bank of Jinzhou from existing shareholders.ICBC invested 3 billion yuan (US$435 million) for a 10.8 per cent stake, according to a filing on July 28. Photo: Roy Issa alt=ICBC invested 3 billion yuan (US$435 million) for a 10.8 per cent stake, according to a filing on July 28. Photo: Roy IssaICBC invested 3 billion yuan (US$435 million) for a 10.8 per cent stake, completing the deal through its unit ICBC Financial Asset Investment Co. Two distressed asset managers, China Cinda Asset Management Co and Great Wall Asset Management Co, funded the remaining 7.5 per cent stake.ICBC said it had made "a financial investment" in Bank of Jinzhou, according to its filing to the Shanghai Stock Exchange on July 28.The leadership reshuffle unveiled Monday, however, would indicated a deeper relationship.S&P; Global Ratings credit analyst Liang Yu said policymakers "are adopting an alternative method of managing troubled banks" following the takeover of Baoshang in May.Reports of Baoshang's rescue triggered a liquidity crunch for smaller lenders, as they were forced to cancel fundraising plans after investors pulled out.Liang said smaller banks continue to face tighter liquidity and funding conditions."The credit spreads between the regional banks and major banks widened materially after the Baoshang Bank takeover. We expect this widened spread to persist for some time," Liang said.Shares of ICBC shed 1.9 per cent to close at HK$5.1 in Hong Kong on Monday, while in Shanghai they fell 1.4 per cent to 5.5 yuan.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.

  • Should You Be Adding Industrial and Commercial Bank of China (HKG:1398) To Your Watchlist Today?
    Simply Wall St.

    Should You Be Adding Industrial and Commercial Bank of China (HKG:1398) To Your Watchlist Today?

    Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

  • China's ICBC and Cinda Asset Management to take combined 17.3% in Bank of Jinzhou
    Reuters

    China's ICBC and Cinda Asset Management to take combined 17.3% in Bank of Jinzhou

    The Industrial and Commercial Bank of China (ICBC), the country's largest lender by assets, and China Cinda Asset Management, one of China's four largest bad banks, said on Sunday they would take stakes in troubled Bank of Jinzhou. Concern has been growing about Bank of Jinzhou since the Hong Kong-listed lender suspended trading in its shares earlier this year and saw its auditor quit. ICBC's ICBC Financial Asset Investment Co unit signed an equity transfer agreement to invest up to 3 billion yuan ($436 million) in a 10.82% stake of Bank of Jinzhou, it said in a statement filed to the Shanghai Stock Exchange.