3968.HK - China Merchants Bank Co., Ltd.

HKSE - HKSE Delayed Price. Currency in HKD
36.900
-0.350 (-0.94%)
At close: 4:08PM HKT
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Previous Close37.250
Open37.500
Bid36.850 x 0
Ask36.900 x 0
Day's Range36.600 - 37.500
52 Week Range27.350 - 42.750
Volume28,666,983
Avg. Volume17,778,099
Market Cap935.47B
Beta (3Y Monthly)1.41
PE Ratio (TTM)10.35
EPS (TTM)3.564
Earnings DateN/A
Forward Dividend & Yield1.07 (2.90%)
Ex-Dividend Date2019-07-04
1y Target Est36.34
  • China Construction Bank and China Merchants Bank ace stress test conducted by DBS Bank
    South China Morning Post

    China Construction Bank and China Merchants Bank ace stress test conducted by DBS Bank

    China Construction Bank and China Merchants Bank are seen as the two most resilient mainlands banks capable of withstanding an extreme economic downturn because of their strong capital base, according to a stress test conducted by DBS Bank.Only two other banks " Chongqing Rural Commercial Bank and Bank of Shanghai " passed the Singaporean bank's stress test involving a total of 19 lenders, which represent 76 per cent of the assets in China's banking industry.China's banking industry will need to raise 2 trillion yuan (US$291 billion) to replenish their capital in the event of three bear scenarios, Ken Shih, a banking and insurance analyst with DBS told a press conference on Wednesday in Hong Kong to announce the results of the study.Specifically, the scenarios suppose a big drop in annual economic growth to 4 per cent (from more than 6 per cent currently) in 2020, to be accompanied by the bursting of a residential credit bubble that could trigger a 31 per cent plunge in property prices, and non-performing loans rate for private firms spiking by 5 percentage points from the current level to 10 per cent.China Merchants Bank was one of the three Chinese banks held in contempt by a US court for refusing to comply with subpoenas in an investigation into North Korean sanctions violations. Photo: Reuters alt=China Merchants Bank was one of the three Chinese banks held in contempt by a US court for refusing to comply with subpoenas in an investigation into North Korean sanctions violations. Photo: ReutersDBS conducted the study, zeroing in on these 19 banks, after gathering feedback from clients on investing in Chinese banking stocks.On the prospects of the banks' share prices involved in the stress tests, Shih said that he "likes China Construction and China Merchants for their low exposure to risky segments and sufficient capital level to cover credit risks".He added Bank of Shanghai could benefit from its shift in focus to retail banking and strength in fee-based income, while Chongqing Rural's outlook depends on the smooth listing of its A shares due later this year.Chinese banks have been in the media spotlight this week for working with a Hong Kong front company accused of laundering more than US$100 million for North Korea.On Tuesday, the Washington Post reported that a US district judge had found three Chinese banks for refusing to comply with subpoenas in an investigation into North Korean sanctions violations. Although the report did not identify the banks, but details in the court ruling align with a 2017 civil forfeiture action against Bank of Communications (Bocom), China Merchants Bank and Shanghai Pudong Development Bank (SPDB), with the possibility that SPDB could be cut off from the US financial markets."We still think the chance is quite slim for the US to pass a final ruling to sanction the banks. But this is actually a political risk rather than a credit risk, thus difficult for us to calculate," Shih said.US assets account for 5 per cent of China Merchants' and Shanghai Pudong's total assets, while Bocom's exposure stands at 10 per cent.Most of their US assets are in the form of US dollar loans and trade finance, he said, adding that Shanghai Pudong's credit profile was relatively weaker.On Wednesday the share prices of China Merchants, Bocom and Shanghai Pudong recovered from Tuesday's plunge after the three banks issued separate statements dismissing allegations they were in breach of sanctions against North Korea. They said having been following the UN sanctions resolution, and were operating in accordance with international and Chinese laws.Their shares continued rising on Thursday, with China Merchants and Bocom up 2.3 per cent and 0.5 per cent, respectively in Hong Kong. Shanghai Pudong's A shares rose 0.7 per cent in Shanghai.The banks' statements were supported by the China Banking Association, a semi-official organisation that operates under the auspices of the China Banking and Insurance Regulatory Commission.Bu Xiangrui, the association's chief legal counsel, said that Chinese banks should not follow the directives of the US court because the latter had not sought permission from the Chinese authorities to collect information."They essentially force companies or individuals in other countries to follow the US law, which violates the judicial sovereignty of other countries and does not conform to the spirit of international law," Bu said.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.

  • China Merchants Bank, Bank of Communications and Shanghai Pudong Development Bank dismiss US's North Korea sanctions breach charges
    South China Morning Post

    China Merchants Bank, Bank of Communications and Shanghai Pudong Development Bank dismiss US's North Korea sanctions breach charges

    Mainland Chinese commercial banks China Merchants Bank, Bank of Communications (Bocom) and Shanghai Pudong Development Bank (SPDB) on Tuesday dismissed allegations they were in possible breach of US sanctions against North Korea.In statements issued after their stocks were hammered by a Washington Post report alleging misconduct, the lenders said they have been complying with international and Chinese laws, and were not involved in any investigations related to a possible breach of the sanctions.China's ministry of foreign affairs voiced its opposition to possible sanctions against the banks. It said Beijing was committed to upholding United Nations Security Council resolutions against North Korea, and that it not only required individuals and financial institutions to follow all sanction resolutions passed by the UN, but had also urged overseas branches of Chinese financial companies to comply with local rules."Meanwhile, we are also opposed to the so-called long arm enforcement imposed by the US authorities on Chinese companies," Geng Shuang, a ministry spokesman, said at a press briefing in Beijing.The Washington Post reported on Monday three large Chinese banks could lose access to the US financial system after a judge found them in contempt for refusing to comply with subpoenas in an investigation into breaches of North Korean sanctions.Shares in China Merchants Bank dropped by more than 8.2 per cent in Shanghai, but recovered after the bank's statement to close 4.8 per cent lower. Photo: Reuters alt=Shares in China Merchants Bank dropped by more than 8.2 per cent in Shanghai, but recovered after the bank's statement to close 4.8 per cent lower. Photo: ReutersThe banks were not identified, but details in the court ruling align with a 2017 civil forfeiture action against Bocom, China Merchants Bank and SPDB, according to the report.The three banks were identified by US authorities in official documents as early as 2016, according to earlier media reports, allegedly for handling bank accounts held by front companies used to enable North Korea to buy commodities, bypassing US sanctions.Other state-owned banks, including Agricultural Bank of China, China Construction Bank and the Industrial and Commercial Bank of China, were also named in earlier investigations by the US Department of Justice.Bocom stock fell by 3 per cent in Shanghai and 3.7 per cent in Hong Kong on Tuesday, following The Washington Post report. Photo: Reuters alt=Bocom stock fell by 3 per cent in Shanghai and 3.7 per cent in Hong Kong on Tuesday, following The Washington Post report. Photo: Reuters"China Merchants Bank has noticed The Washington Post report. It involves information about a US court asking for client information from a Chinese bank," the lender said in its statement.The US authorities should follow the agreement signed by China and the United States on mutual legal help in criminal matters for cross-border evidence collection, said the statement, quoted in mainland Chinese media The Paper.Bocom and SPDB issued statements with similar wording in the afternoon, also cited by The Paper.SPDB specifically acknowledged it had received a requirement from a US legal department to provide information about a client, in addition to other data and information. However, any individual or organisation shall not disclose related information to overseas parties without permission, it said.SPDB was also identified by The Washington Post as "at risk of losing access to US dollars", without any elaboration."I view it as likely to be a politically motivated attack by Trump administration officials looking for excuses to contain and curb China's growth ... It is doubtful that a large bank such as China Merchants Bank would break sanctions, as it has too much to lose," he said.China Merchants Bank dropped by more than 8.2 per cent on Tuesday in Shanghai, but recovered after the bank's statement to close at 36.1 yuan, 4.8 per cent lower. Its H shares dropped by 7.9 per cent to close at HK$38.4 in Hong Kong. Bocom fell by 3 per cent to close at 6.1 yuan in Shanghai. Its H shares eased 3.7 per cent to close at HK$5.95. SPDB fell 3.1 per cent to close at 11.7 yuan in Shanghai.The US excluded China's Bank of Dandong from its financial system in November, 2017, for reportedly helping North Korea evade financial sanctions to launder funds.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.

  • Reuters

    UPDATE 2-Chinese bank may face U.S. action in N. Korean sanctions probe - Washington Post

    A U.S. judge has found three large Chinese banks in contempt for refusing to comply with subpoenas in a probe into North Korean sanctions violations, the Washington Post reported https://wapo.st/2X6ptOL, adding one of them could lose access to the U.S. financial system. The banks were not identified by the judge, but details in the ruling align with a 2017 civil forfeiture action against Bank of Communications, China Merchants Bank and Shanghai Pudong Development Bank, the newspaper reported.

  • Reuters

    China Merchants Bank says not involved in any probe related to sanction violations

    China Merchants Bank said on Tuesday that it complies with related United Nations resolutions and Chinese laws, and is not involved in any investigations related to possible violations of sanctions. The Washington Post reported on Monday that three large Chinese banks could lose their access to the U.S. financial system after a judge found them in contempt for refusing to comply with subpoenas in a probe into violation of North Korean sanctions. The three banks were not identified by the judge, but details in the court ruling align with a 2017 civil forfeiture action against Bank of Communications, China Merchants Bank and Shanghai Pudong Development Bank, according to the report.

  • Reuters

    Chinese bank may face U.S. action in North Korean sanctions probe - Washington Post

    The banks were not identified by the judge, but details in the ruling align with a 2017 civil forfeiture action against Bank of Communications, China Merchants Bank and Shanghai Pudong Development Bank, the newspaper reported. The U.S. Justice Department at the time accused the banks of working with a Hong Kong company, which allegedly laundered more than $100 million for North Korea's sanctioned Foreign Trade Bank, the paper said.

  • Reuters

    Three Chinese banks face US action in N.Korean sanctions probe -Washington Post

    Three large Chinese banks could lose their access to the U.S. financial system after a judge found them in contempt for refusing to comply with subpoenas in a probe into violation of North Korean sanctions, The Washington Post reported https://wapo.st/2X6ptOL on Monday. The three banks are not identified by the judge, but details in the court ruling align with a 2017 civil forfeiture action against Bank of Communications, China Merchants Bank and Shanghai Pudong Development Bank, according to the report. The U.S. Department of Justice back then accused the banks of working with a Hong Kong company, which allegedly laundered over $100 million for North Korea's sanctioned Foreign Trade Bank, according to the paper.

  • Reuters

    BRIEF-China Merchants Bank Gets Regulator Approval To Set Up Wealth Management Firm

    April 19 (Reuters) - China Merchants Bank Co Ltd : * SAYS IT GETS BANKING AND INSURANCE REGULATOR'S APPROVAL TO SET UP WEALTH MANAGEMENT FIRM Source text in Chinese: http://bit.ly/2VfgFUQ Further company ...

  • Reuters

    BRIEF-China Merchants Bank Appoints Wang Jianzhong, Shi Shunhua As Vice President

    Feb 1 (Reuters) - China Merchants Bank Co Ltd : * SAYS ZHU QI, ZHAO JU RESIGN FROM VICE PRESIDENT POSITIONS DUE TO CHANGE IN JOB ROLE, EFFECTIVE FROM FEB 1 * SAYS IT APPOINTS WANG JIANZHONG, SHI SHUNHUA ...

  • Reuters

    BRIEF-China Meheco Sells Shares In China Merchants Bank And China Merchants Securities

    Dec 27 (Reuters) - China Meheco Group Co Ltd: * SAYS IT HAS SOLD SHARES IN CHINA MERCHANTS BANK AND CHINA MERCHANTS SECURITIES IN DEC, EXPECTS TO RECEIVE NET INVESTMENT GAIN OF 213.0 MILLION YUAN ($30.93 ...

  • Reuters

    BRIEF-China United Network Communications Unit And China Merchants Bank To Boost JV Capital

    Dec 4 (Reuters) - China United Network Communications Ltd : * SAYS UNIT AND CHINA MERCHANTS BANK PLAN TO BOOST CAPITAL OF ITS CONSUMER FINANCE JV BY 1.0 BILLION YUAN ($146.26 million)EACH Source text in ...

  • Reuters

    BRIEF-China Merchants Bank To Boost Capital Of Its Consumer Finance JV By 1.0 Bln Yuan

    Nov 12 (Reuters) - China Merchants Bank Co Ltd : * SAYS BOARD APPROVES TO BOOST CAPITAL OF ITS CONSUMER FINANCE JV BY 1.0 BILLION YUAN ($143.60 million) Source text in Chinese: https://bit.ly/2Fk7ADL Further ...