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PR Newswire
07-07-2023, 06:30 PM
3 out of the 4 China State Banks (ABC, CCB, ICBC) are potential test subjects if they are value traps.
Since the start of 2023, their price earnings ratio is below 5 and dividend yield is 8-9%. They are the top 3 in Tier 1 equity ratios, with price book less than 0.5. The banks are not oppressing OPMIs or giving them low dividends
To value investors, these 3 banks are intrinsically undervalued. However, are they value traps with worsening fundamentals as mentioned in Weijian's point 2? I wouldn't know, but as time progresses we will know if this story of a value trap among the China state banks is true
Since the start of 2023, their price earnings ratio is below 5 and dividend yield is 8-9%. They are the top 3 in Tier 1 equity ratios, with price book less than 0.5. The banks are not oppressing OPMIs or giving them low dividends
To value investors, these 3 banks are intrinsically undervalued. However, are they value traps with worsening fundamentals as mentioned in Weijian's point 2? I wouldn't know, but as time progresses we will know if this story of a value trap among the China state banks is true