China's new credit growth is bigger than market expectations

Securities Times reporter Tangsun The increase in credit growth in the mainland is greater than market expectations, and some foreign agencies have expressed concern about the prospects for mainland banking stocks. Peter Elston, strategist at Aberdeen Asset Management (Asia), said he was concerned about the large number of loans to the mainland banking sector under current policy incentives.　　He said the move, while expected to spur a rise in profits in the banking sector in the medium term, expressed concern that non-performing loans could be spawned in the next few years. Liao, a credit analyst for S & P, said the asset quality of domestic banks could fall further in 2009, but should be kept at manageable levels, with the key to controlling the macroeconomic environment at home and abroad. If the growth of the mainland economy continues to slump, the quality of the bank's assets will deteriorate sharply in the next 2-3 years, but from the current economic situation, China's banking system should be able to withstand the deterioration of asset quality, but the credit status of different banks may be divided.　　In addition, although the transformation of domestic banks in the past 10 years has been remarkable, but because the risk management capacity is still not perfect, so corporate governance is still facing the important problems of banks, and although the current economic situation may be a setback for banking reform, but the mainland should continue to promote market-oriented banking reform. Peter Elston points out that as the global economy remains unstable and may suddenly improve or worsen in the short to medium term, it is believed that Asia can resume growth even if the economy of the developed region continues to slump, and that he prefers to invest in domestic stocks because export demand will be sluggish over the next few years.　　He believes that the market rate for Asian equities has fallen to nearly 1.3 times-fold, both in absolute terms and in the past, but he has the lowest share of raw materials, which is characterized by the absence of brand value, but the industry is not the ideal long-term investment target. Yesterday, Chinese bank shares fell across the line, including CCB (00939.HK), ICBC (01398.HK) and BOC (03988.HK) respectively fell 3.04%, 2.77% and 2.84%; And 2.71%, Citic Bank (00998.HK) fell 2.98%.