|Bid||0.0000 x N/A|
|Ask||0.0000 x N/A|
|Day's Range||0.6000 - 0.6000|
|52 Week Range||0.5630 - 0.7680|
|Beta (5Y Monthly)||1.05|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.04 (6.47%)|
|Ex-Dividend Date||Jun 25, 2019|
|1y Target Est||N/A|
(Bloomberg) -- If HSBC Holdings Plc is right, one of China’s largest banks could be worth twice its current market value.Bank of Communications Co., China’s sixth-largest lender by assets, has a market capitalization of just over $50 billion. HSBC, the second-largest shareholder of Bocom after the Chinese government, thinks the business is worth more than $100 billion, according to its latest corporate filing.The gap underscores investors’ skepticism over the plight of Chinese banks, which are grappling with the potential for a surge in bad loans as the coronavirus outbreak grounds most activities and pummels the economy. Big Chinese lenders have long sacrificed profits in the name of national service, and that prospect has become increasingly worrying as they are called upon to bail out smaller businesses and even weaker peers.Bocom’s shares have lost 6% this year in Hong Kong after a 9% decline in 2019. Bocom now trades at only 0.46 times its estimated book value for 2020, according to data compiled by Bloomberg.Yet in its annual report published this week, HSBC said that though the fair value placed on its 19.03% stake in Bocom was just $10.1 billion, its internal models valued the holding at $21.5 billion. HSBC’s calculation implies a valuation for the Shanghai-based bank of about $113 billion, more than double its current market value.HSBC said that its valuation of the stake had been above the market for the past eight years leading it to carry out an impairment test to confirm it didn’t need to write down the value.“Our discussions and focus on assumptions was driven by consideration of the current levels of uncertainty due to the impact of China-U.S. trade tensions, and the overall outlook for the Chinese banking market, and the broader Chinese economy,” HSBC said in its annual report.HSBC’s interest in Bocom goes beyond just its financial holding. Under an agreement between the two banks, it operates a technical cooperation program involving the secondment of its staff to the Shanghai-based lender to help with what its says is the “maintenance of Bocom’s financial and operating policies.”HSBC intends to maintain its long-standing partnership with Bocom and has no plans to sell or increase its stake, a spokeswoman in Hong Kong said in an email.Investors are turning more downbeat on the Chinese banks, whose shares have underperformed the benchmark in most of the past five years. The “big six” state-owned lenders, which together control more than $17 trillion of assets, currently trade at an average 0.58 times their forecast book value, near a record low.\--With assistance from Alfred Liu.To contact Bloomberg News staff for this story: Harry Wilson in London at email@example.com;Jun Luo in Shanghai at firstname.lastname@example.orgTo contact the editors responsible for this story: Ambereen Choudhury at email@example.com, Jonas Bergman, Katrina NicholasFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Bank of Communications Co., Ltd. (HKG:3328) saw a decent share price growth in the teens level on the SEHK over the...
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.
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.
BEIJING/SINGAPORE (Reuters) - China's five biggest state-owned banks posted a modest growth in quarterly profit as policymakers pushed them to make more loans, but the results still missed expectations amid the lingering impact of an economic slowdown. Net profits at the country's so-called Big Five banks, led by Industrial and Commercial Bank of China Ltd (ICBC), grew by more than 4 percent in the January-March quarter from a year earlier. The gain comes on the heels of disappointing 2018 fourth quarter when four of the five turned in their weakest profit growth in more than two years as business activity slowed and they sharply increased provisions for bad loans.
BEIJING/SINGAPORE(Reuters) - China's five largest state-owned banks posted modest first-quarter profit growth, though slightly below expectations, as policymakers pushed lenders to make more loans to support the slowing economy. Net profits at the country's so-called Big Five banks, led by Industrial and Commercial Bank of China Ltd (ICBC), grew by more than 4 percent in the January-March quarter from a year earlier. The gain comes on the heels of disappointing 2018 fourth-quarter results that saw four of the five lenders posting their weakest quarterly profit growth in more than two years as business activity slowed and they sharply increased provisions for bad loans.
BEIJING/SINGAPORE, April 30(Reuters) - China's five largest state-owned banks posted modest first-quarter profit growth, though slightly below expectations, as policymakers pushed lenders to make more loans to support the slowing economy. Net profits at the country's so-called Big Five banks, led by Industrial and Commercial Bank of China Ltd (ICBC) , grew by more than 4 percent in the January-March quarter from a year earlier. The gain comes on the heels of disappointing 2018 fourth-quarter results that saw four of the five lenders posting their weakest quarterly profit growth in more than two years as business activity slowed and they sharply increased provisions for bad loans.
BEIJING/SINGAPORE (Reuters) - China's Bank of Communications Co Ltd (BoCom) posted a 4.9 percent rise in its first-quarter net profit as bad loan ratio and interest margins improved. Profit at China's ...
April 26 (Reuters) - Diary of Hong Kong (.HSI) corporate earnings for the week ahead. HONG KONG EARNINGS Start Date Start Time RIC Company Event Name (GMT) 29-Apr-2019 AMC 601939.SS China Construction ...
April 9 (Reuters) - Bank Of Communications Co Ltd : * SAYS CHAIRMAN PENG CHUN RESIGNS DUE TO CHANGE IN JOB ROLE, EFFECTIVE FROM APRIL 9 Source text in Chinese: https://bit.ly/2CZbePJ Further company coverage: ...
BEIJING/HONG KONG, March 29 (Reuters) - Bank of Communications Co Ltd (BoCom) , China's fifth-largest commercial bank by assets, reported a 3 percent rise in fourth-quarter net profit helped by improving ...