|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||9.21 - 9.48|
|52 Week Range||9.21 - 12.39|
|Beta (3Y Monthly)||1.11|
|PE Ratio (TTM)||4.13|
|Forward Dividend & Yield||0.65 (6.82%)|
|1y Target Est||N/A|
(Bloomberg) -- The global hunt for yield is a boon for Chinese banks raising capital via perpetual bonds.Agricultural Bank of China Ltd. sold 85 billion yuan ($12 billion) of perpetual bonds last week at a coupon of 4.39%, the lowest level since lenders first started selling the debt instruments in January. Total sales of the bonds, which lack a maturity date, now amount to 315 billion yuan. Postal Savings Bank of China Co. said Tuesday it plans to sell such debt totaling as much as 80 billion yuan or equivalent in foreign currencies.“Due to declining risk-free interest rates, coupled with supportive policies for bank perpetuals, most issues were oversubscribed, which shows a robust market demand,” said Yu Liang, an analyst at S&P Global Ratings. She said issuance will top 1 trillion yuan soon.Average coupons on offer on bank perpetuals sold so far is about 4.63%, compared with about 3% for China’s 10-year sovereign bond yield.Bulking up on capital is a pressing need for Chinese banks as they grapple with rising bad debt while being pushed to help the government achieve its economic growth target. The People’s Bank of China in January introduced a swap program designed to make perpetual bonds more liquid in secondary trading to increase its appeal among buyers.Read: China to Do More to Help Perpetual Bond Sales, PBOC’s Pan SaysThe central bank may expand the size of the swap program, while officials may take measures to attract more investors, Yu said.Here are some more analyst comments:Yu Liang, an analyst from S&P Global:The central bank may expand the size of the swap program, and policy makers will take measures to attract more investors to this marketBanks are main buyers of this tool but insurance companies are also showing an interest because it matches their long-term liabilitiesMost bank perpetuals are added to wealth management portfolios issued by other banks, and there are concerns on mitigating losses suffered by individualsTan Songheng, analyst from Hunan Sanxiang Bank Co.The supply of bank perpetuals is likely to grow as Chinese regulators continue to encourage commercial lenders to raise core capital, especially after the liquidity crunch caused by a seizure of a regional bankSome perpetuals have changed hands in the secondary market, in a sign that liquidity condition has improved, and the supportive measures by the central bank have started to take hold(Updates with Postal Bank’s perpetual bond sale plan in second paragraph.)\--With assistance from Matt Turner.To contact Bloomberg News staff for this story: Tongjian Dong in Shanghai at firstname.lastname@example.org;Wenjin Lv in Shanghai at email@example.com;Yuling Yang in Beijing at firstname.lastname@example.orgTo contact the editors responsible for this story: Neha D'silva at email@example.com, Chan Tien HinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- It’s hard not to see HSBC Holdings Plc’s exclusion from China’s interest-rate reform as a snub.Hong Kong’s biggest bank wasn’t included in a list of 18 lenders that will participate in pricing for a new loan prime rate that the People’s Bank of China will start releasing Tuesday. The roster includes foreign lenders Standard Chartered Plc and Citigroup Inc., which have smaller China businesses than HSBC.It’s the latest sign that all may not be well in HSBC’s relations with Beijing, after a turbulent period that has seen the departures this month of Chief Executive Officer John Flint and the bank’s Greater China head, Helen Wong. HSBC shares fell 13% in Hong Kong this year through last Friday, compared with a decline of less than 1% in the benchmark Hang Seng Index.London-based HSBC, which is also Europe’s biggest bank, has made China a key plank of its growth strategy. The lender is the third-largest corporate bank in the country by market penetration, according to data provider Greenwich Associates LLC. That places it ahead even of China Construction Bank Corp. and Agricultural Bank of China Ltd., two of the nation’s big four state-owned lenders. Standard Chartered and Citigroup don’t rank among the top five, according Gaurav Arora, head of Asia Pacific at Greenwich.It could be argued that HSBC’s focus on big corporate clients means it’s less attuned to the loan market for small and medium-size enterprises that are the focus of China’s changes to its interest-rate regime. That would be a stretch, though. Corporate banking is a scale game. And even though StanChart may have a greater preponderance of smaller clients, HSBC surely has many similar customers. Citigroup’s inclusion makes more sense: It’s the only U.S. bank in China with a consumer-lending business that spans credit cards to SME loans. The list also includes less influential domestic lenders such as Bank of Xian Co. Those searching for reasons why HSBC may have fallen into China’s bad books may point to Huawei Technologies Co. Liu Xiaoming, China’s ambassador to the U.K., summoned Flint to the embassy earlier this year to interrogate him over the bank’s role in the arrest and prosecution of Meng Wanzhou, the chief financial officer of Huawei, the Financial Times reported Monday. The then-CEO told him HSBC had no option but to turn over information that helped U.S. prosecutors build a case against Meng, the FT said. On Aug. 9, an HSBC spokeswoman denied that Wong’s departure as Greater China head was linked to any issue involving Huawei, pointing out that she announced her resignation before Flint’s departure. Still, the bank has faced criticism in China’s state-owned media over its role in the case. The way HSBC helped the U.S. Department of Justice acquire documents concerning Huawei was unethical, the Global Times reported previously, citing a source close to the matter. The bank was likely to be included in China’s first “unreliable entity” list of companies that have jeopardized the interests of Chinese firms, it said.The timing of China’s interest-rate snub won’t do anything to quell jitters, coming a day after Cathay Pacific Airways Ltd. CEO Rupert Hogg resigned amid criticism from Chinese regulators over its stance on employee participation in Hong Kong’s protests. Beijing is becoming more muscular in its attitude to the city’s unrest and foreign-owned businesses aren’t being spared. In an increasingly politicized environment, even a business that’s been around for 154 years will have to tread carefully. To contact the author of this story: Nisha Gopalan at firstname.lastname@example.orgTo contact the editor responsible for this story: Matthew Brooker at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Agricultural Bank of China Limited and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
On Monday, Industrial & Commercial Bank of China Ltd., Bank of China Ltd., China Construction Bank Corp. and Bank of Communications Co. posted higher net income. Including Agricultural Bank of China Ltd., which reported last week, rises at the big five clustered in a range from 4.1 percent to 4.9 percent. At the same time as profit climbed, nonperforming loans as a ratio of total lending dropped – though overall levels of bad debt increased.
Investing.com - Bad loans at China's four largest lenders grew at the fastest pace since 2017 in the first quarter, Bloomberg reported citing financial statements.
* AgBank Q1 net profit up 4.3 pct on-year, below estimates * Non-performing loan ratio 1.53 pct end-March vs 1.59 pct end-Dec (Adds milestone, bullet points) SINGAPORE/BEIJING, April 26 (Reuters) - Agricultural ...
SINGAPORE/BEIJING, April 26 (Reuters) - Agricultural Bank of China Ltd (AgBank) , the country's third-largest lender by assets, reported on Friday a 4.3 percent rise in first-quarter net profit, missing ...
April 25 (Reuters) - Shanghai Jinjiang International Travel Co Ltd: * SAYS IT HAS SOLD ITS ENTIRE 14.87 MILLION A-SHARES IN AGRICULTURAL BANK OF CHINA BETWEEN APRIL 19 AND APRIL 24 Source text in Chinese: ...
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card! A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over tim...
* AgBank's Q4 net profit down 5.4 pct, below estimates * NPL 1.59 pct at end-Dec vs 1.6 pct end-Sept * Net interest margin at 2.33 pct vs 2.35 pct end-June (Adds milestone, earnings details) BEIJING/HONG ...
BEIJING/HONG KONG, March 29 (Reuters) - Agricultural Bank of China Ltd (AgBank) , the country's third-largest lender by assets, reported on Friday a 5.4 percent drop in fourth-quarter net profit. AgBank's ...
Want to participate in a short research study? Help shape the future of investing tools and receive a $60 prize! Today we're going to take a look at the well-established Read More...
A shift was inevitable, with the stock market still flagging after sinking into a bear market last year. Yi Huiman, chairman of Industrial and Commercial Bank of China Ltd., will succeed Liu Shiyu as chairman of the China Securities Regulatory Commission, the state-run Xinhua News Agency announced Saturday, confirming an earlier report by Bloomberg News. No CSRC chairman has lasted more than three years.
Pressured by everything from cheap passive funds to burdensome regulations, big asset managers have been pinning their future on China’s growing $15 trillion fund industry. Officials even permitted foreign fund managers and investment banks to control their China joint ventures. Last month, China made a new rule requiring banks to spin off their wealth-management products into subsidiaries.
It’s strange that President Xi Jinping appears to be working toward the same end. The risk for any economy approaching China’s level of development is that it gets ensnared in the middle-income trap. Latin America, the former Soviet Union and the largest Middle Eastern countries have never managed to close the gap with the U.S., Europe and Japan that opened up a century ago.
Large banks such as Agricultural Bank of China Limited (HKG:1288), with a market capitalisation of HK$1.4t, have benefited from improving credit quality as a result of post-GFC recovery, leading to Read More...
Agricultural Bank of China Limited (HKG:1288) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the Read More...
Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. Historically, Agricultural Bank of China Limited Read More...
Moody's Investors Service ("Moody's") has assigned an A1 long-term rating to the proposed senior unsecured US$ floating and fixed rate notes to be issued by Inventive Global Investments Limited (Inventive Global). Inventive Global Investments Limited, incorporated in the British Virgin Islands, is a wholly-owned subsidiary of ABC International Holdings Limited, which is a wholly-owned subsidiary of Agricultural Bank of China Limited (ABC, A1 stable, baa2 baseline credit assessment).