ICBC : Industrial and Commercial Bank of China (1398)

Five Major Banks Misuse 58B Yuan
* Wednesday 2011-06-29 15:27

June 28 – Some 58 billion yuan of 347.2 billion yuan in new loans granted by Industrial and Commercial Bank of China (ICBC) (601398, 1398.HK) and four other commercial banks violated regulations or were misappropriated, reports the China Securities Journal, citing the National Audit Office (NAO).

The five large commercial banks reportedly granted 25.4 billion yuan in loans to projects that began construction before obtaining government approval or had less than required capital. Some loans were also used to repay previous loans, added NAO.

Small guarantee loan policies did not function as expected due burdensome procedures and short terms, the source said.

In 2010, small guarantee loan funds in nine provinces could grant a total of 16.03 billion yuan worth of loan, but only 3.79 billion yuan or 24 percent of the total was actually extended.

A-shares of ICBC shed 1.33 percent to trade at 4.44 yuan at 14:06 today.

ICBC ( 1398.HK ) closed at $4.22 today down approx 20% from 3 Months ago

Report on aastocks website on 8 Nov 2012 :

JP Morgan slashed ICBC (01398.HK)'s non-interest income forecast for the next two years by 4% and 6% as the slowdown in fee income growth dragged overall operating revenue, while net interest margin is expected to widen by 2 bps. Capital position would remain solid with Tier-1 capital ratio of 10.51%, while deposit growth would be 3% quarter-on-quarter, JPM said in a report.

ICBC is kept Overweight with target price hiked 8% to $6.25, remaining the broker's top pick among Chinese banks.

Price now $5.23 ( Noon - 30Nov 20120 )

ICBC is now trading at 5.4x PE, with 6% dividend. Looks like a good deal for annual ROE of 20% over the past 3 years. Any buddies got insights or vested into Chinese banks?

Hope to hear your views!

Temasek seems to be a big garang guni - after becoming a strategic holder in Olam, they are very keen to be big bankers in China... may be local bankers like OCBC and UOB should just hoot like Temasek...

http://www.bloomberg.com/news/2013-06-28...-icbc.html

Temasek has accumulated more than $17 billion of holdings in Beijing-based ICBC, China Construction Bank Corp. (939) and Bank of China Ltd. over the past two years, according to data compiled by Bloomberg.

Singapore’s Temasek Increases Its Stake in Chinese Lender ICBC

By Klaus Wille - Jun 28, 2013 8:49 PM GMT+0800
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Temasek Holdings Pte, Singapore’s state-owned investment company, raised its stake in Industrial & Commercial Bank of China Ltd., adding to its interests in state-controlled lenders of the world’s second-largest economy.
Temasek bought 126 million shares at an average price of HK$4.602 each, or a total of about HK$580 million ($75 million), according to a Hong Kong stock exchange statement yesterday. That raised Temasek’s holdings in the Hong Kong shares of ICBC to 8.07 percent from 7.92 percent. Stephen Forshaw, a spokesman for Temasek in Singapore, confirmed the transaction by telephone.
Temasek bought 3.55 billion ICBC shares from Goldman Sachs Group Inc. (GS) in April last year and then disclosed the purchase of a further 83.7 million shares in the Chinese lender the following month. It bought 280 million shares of the bank for HK$5.50 each last month, according to a May 21 filing.
Temasek has accumulated more than $17 billion of holdings in Beijing-based ICBC, China Construction Bank Corp. (939) and Bank of China Ltd. over the past two years, according to data compiled by Bloomberg. Global firms including Goldman Sachs and Bank of America Corp. have divested holdings as new capital rules known as Basel III make it more expensive to hold minority stakes in banks.
To contact the reporter on this story: Klaus Wille in Singapore at kwille@bloomberg.net
To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

Temasek seems to be a big garang guni - after becoming a strategic holder in Olam, they are very keen to be big bankers in China... may be local bankers like OCBC and UOB should just hoot like Temasek...

One can afford this kind of luxury if he/she is loaded with OPM and no accountability .

International funds are exiting china now.

Chinese banks are so hot becareful burn your fingers

but how come rmb strengthen?

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(28-06-2013, 07:27 AM)Thriftville Wrote: ICBC is now trading at 5.4x PE, with 6% dividend. Looks like a good deal for annual ROE of 20% over the past 3 years. Any buddies got insights or vested into Chinese banks?

Hope to hear your views!

how come so cheap now? must have a reason..did u check yr data if is correct?

(28-06-2013, 07:27 AM)Thriftville Wrote: ICBC is now trading at 5.4x PE, with 6% dividend. Looks like a good deal for annual ROE of 20% over the past 3 years. Any buddies got insights or vested into Chinese banks?

Hope to hear your views!

Does look like a good deal but think can patiently wait IMO. Last 3 years loan growth of 13-18% appears elevated IMO and future credit costs may erode future earnings -especially all the negative news about Chinese economy now (not sure how true is it though). I will enter when P/B less than 1...

(30-06-2013, 11:34 PM)pianist Wrote: but how come rmb strengthen?

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(28-06-2013, 07:27 AM)Thriftville Wrote: ICBC is now trading at 5.4x PE, with 6% dividend. Looks like a good deal for annual ROE of 20% over the past 3 years. Any buddies got insights or vested into Chinese banks?

Hope to hear your views!

how come so cheap now? must have a reason..did u check yr data if is correct?

Chinese banks had corrected 10-20% in the recent sell down on liquidity fears. The PBOC had meant to punish the banks by tightening money supply for fueling the shadow banking biz in China. Now that the Chinese bank had been taught a lesson, PBOC had loosened the money supply tap again. However, this also meant that more Chinese banks will start to de -leverage and their earnings will potentially drop. The other negatives are bank earnings growth will slow with the property curbs and lower GDP growth target. And NPLs are also climbing.

If you like high yielding Chinese bank stocks, BOC HK will be a better choice.
http://www.aastocks.com/SC/News/HK6/0238...49335.html

You can find the ICBC bank data info link here :
http://www.aastocks.com/SC/stock/DetailQ...mbol=01398