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<Research>CLSA Adjusts TPs on CN Banks, Prefers ICBC
Recommend 17 Positive 48 Negative 24 |
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China is anticipated to adopt tougher macro policies to cope with possible Trump-induced external uncertainties and stick to its 5% economic growth target, CLSA said in a research note. The broker expected the key changes in China to be in a slower loan volume growth, lower asset expansion in 2024 and 2025, lower NIM forecasts for 2025, higher NPL formation and higher credit costs for 2024 and 2025, leading the broker to adjust the target prices of most of the Chinese banks it already covered. CLSA estimated that China's budget deficit will reach 4% in 2025 and local governments may receive more support. For Chinese banks, the broker forecast NII to improve due to a slight rise in lending, and the YoY decline in NIM to narrow, pressure on asset quality to ease. The broker preferred ICBC (01398.HK) among Chinese banks' H-shares. CLSA reiterated Outperform on ABC (01288.HK), raising target price from $4 to $4.2; maintained Outperform on BANK OF CHINA (03988.HK), lowering target price from $4.1 to $3.9; kept Outperform on CCB, hiking target price from $5.9 to $6.2; and upheld Outperform on ICBC, lifting target price from $4.9 to $5.2. AAStocks Financial News |
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