Story of the day
China banks are at their best performance in 10 years, and we believe the positive momentum will carry on for the next few months.
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What does this mean for your portfolio?
The current valuation of HK-listed China banks offers good risk-reward. DBS Group Research prefers banks with better asset quality and those that are in a stronger position to deal with NIM pressure.
We like these:
Banks with better asset quality
We are favouring banks for its strong position in retail banking, which leads to less NIM and NPL pressure.
We also like banks that offer higher ROE than its peers. The ROE advantage has potential to acquire more wealth management clients.
Want to know more on our stock research ideas?
Please visit DBS Treasures website.
Click under “Research” > “What's New” > “Equities to Watch”:
You can then select your Favorite Sectors:
