Financial China

Is investor gloom toward banks overdone?

  • Published 13 Jan 2011

Some banks, such as ICBC, CCB and Minsheng, appear better placed than peers during a year which may not turn out to be as dire as many fear.

2010 was a tough year for investors in banking industry stocks, even though banks' profits have so far registered growth of 32% year on year in the first three quarters of 2010. On average, bank share prices in the A-share market plummeted 27.8% in 2010, compared with a 14.3% fall of the Shanghai Composite Index. The PE of most banks' stocks had fallen below 10 by the end of 2010, which was only last seen at the bottom of the great tumble of the A-share market in 2008.

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