China Construction Bank 0939

Re: China Construction Bank 0939

Postby winston » Thu Feb 19, 2009 10:57 am

DJ MARKET TALK: Citigroup Keeps China Construction Bank At Hold

0943 [Dow Jones] STOCK CALL: Citigroup keeps China Construction Bank (0939.HK) at Hold, target HK$4.10 after meeting with management. Notes bank's January loan growth strong, in line with industry trend, but growth in discounted bills not as rapid as industry as management viewed margins as thin; bank made more medium-, long-term loans.

Says bank expects February loan growth to slow on-month, but doesn't expect sharp slowdown. Notes lending for CNY4 trillion government stimulus package hasn't begun yet. Says within sector, keeps preference for BOC (3988.HK); tips top Sells as China Merchants Bank (3968.HK) and Bank of Communications (3328.HK).

"We see CCB as sitting between ICBC (1398.HK) and BOC in terms of investment appeal. CCB, in our view, is neither fundamentally stronger/more resilient than ICBC nor cheap enough on a P/B basis versus BOC." Shares closed down 0.8% at HK$3.78 yesterday
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: China Construction Bank 0939

Postby winston » Wed Mar 11, 2009 2:37 pm

DJ MARKET TALK:Macq Downgrades China Construction Bank To Neutral

1204 [Dow Jones] STOCK CALL: Macquarie downgrades China Construction Bank (0939.HK) to Neutral from Outperform, cuts target to HK$4.00 from HK$5.00 after lowering 2008-09 EPS forecasts by 10%, 20% on lower margin estimates, more conservative credit cost assumptions.

Expects CCB to face greater margin pressure in 2009 than ICBC (1398.HK), BOC (3988.HK) due to slightly higher loan to interest-earning-asset ratio, funding base benefiting less from fall in benchmark rates, given higher exposure to demand deposits.

"We believe the stock is trading at the top end of its near-term trading range, with limited potential for further relative outperformance.
We recommend a switch into ICBC, based on a similar return profile and relative value." CCB shares up 0.5% at HK$3.98; HSI up 2.7%.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: China Construction Bank 0939

Postby winston » Tue Mar 17, 2009 8:40 am

100m CCB shares sold off

A strategic partner has offloaded 100 million shares of China Construction Bank (0939) just over a week before the lender reveals its results on March 27.

The sale came before two strategic shareholders - Bank of America and the Singaporean government's investment firm Temasek - were expected to offload their shares, although the pair have promised not to sell their stakes in the mainland lender before May 7.

Bank of America has 39 billion H shares available for sale and Temasek 13.5 billion. The US bank also has 25.5 billion shares that can only be unlocked from August 2011.

A CCB shareholder yesterday reaped HK$405 million after placing 100 million shares through UBS during the midday break at HK$4.05 each, a discount of 2.9 percent to its morning close of HK$4.17. The placement price also represented a 2.6 percent discount to yesterday's close of HK$4.20. Sources said a Chinese strategic partner sold the CCB stake yesterday. A CCB spokesman noted the sale but declined to give details.

Analysts said although CCB gained after the placement, the overhanging effect still lingers as the number of shares Bank of America and Temasek can sell from next month is much larger and will have a greater impact on its share price.

Offloading of stocks by strategic shareholders has been one of the overhangs facing mainland banks as that puts downward pressure on their stocks.

Industrial and Commercial Bank of China (1398) is also expected to face severe pressure next month as its three main foreign shareholders - Goldman Sachs, Allianz and American Express - can sell their first batch of stakes from April 28. The three hold a total of 12.1 billion ICBC shares.

CCB shares rose 2.94 percent yesterday, while ICBC gained 2.99 percent to HK$3.45. KATHERINE NG
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: China Construction Bank 0939

Postby winston » Mon Mar 30, 2009 7:22 pm

Saw some sell recommendations today ..

CCB says Temasek to raise stake

HONG KONG - China Construction Bank (CCB), the world's second-largest lender by market value, said on Monday that Singapore state investor Temasek Holdings planned to increase its stake in the Chinese lender.

The bank did not clarify when or by how much Temasek would raise its stake, saying only that the Singapore firm would do so over the long term.

CCB also said that loans for the first two months totaled 350 billion yuan (US$51.2 billion).

Construction Bank disappointed investors late on Friday with fourth-quarter earnings that fell short of analysts' forecasts as it booked higher-than-expected impairment charges for bad loans. -- REUTERS
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: China Construction Bank 0939

Postby winston » Tue Mar 31, 2009 7:46 am

CCB seeks to lift confidence from The Standard:-

China Construction Bank (0939) - the mainland's second-largest lender by market value - hopes to maintain earnings at last year's level despite the difficult economic environment.

Chairman Guo Shuqing also shrugged off market worries that strategic shareholders may sell their stakes.

"Bank of America told us it is not thinking of offloading, and [Singapore state investor] Temasek has always told us it wants to raise its holdings," Guo said. "Our situation is different from Industrial and Commercial Bank of China (1398) so we don't need to sign any agreement with strategic shareholders."

CCB last year earned 92.6 billion yuan (HK$105 billion), 34 percent more than a year ago. But fourth-quarter profit dropped 30 percent due to larger impairment losses of 50.8 billion yuan.

Guo told reporters in Hong Kong yesterday that the lender intends to be more prudent in booking provisions. It increased the impairment coverage to more than 130 percent as required by the mainland's industry regulator.

Chief financial officer Pang Xiusheng said the lender could have faster loan and deposit growth this year, compared with last year's 15.7 percent and 19.6 percent, respectively.

"We expect net profit to be much in line with last year's, though we will do our best to improve it," he said.

The statements failed to assure investors. CCB shares ended trading yesterday 9.6 percent down, at HK$4.25.

KATHERINE NG
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: China Construction Bank 0939

Postby winston » Fri Apr 24, 2009 3:41 pm

UPDATE 1-China's CCB Q1 net profit down more than 10 pct-CFO

* CCB CFO says Q1 net profits down 10 pct
* CCB CFO says full year results to exceed expectations
(Adds forcast, details, stock move)

BEIJING/HONG KONG, April 24 (Reuters) - First quarter net profit for China Construction Bank (0939.HK)(601939.SS) will decline by more than 10 percent, Pang Xiusheng, its chief financial officer, told Reuters on Friday.

Pang, speaking on the sidelines of a forum in Beijing, said he was confident that its 2009 full-year results will exceed analysts' forecasts,

CCB, the world's second-largest lender by market value, is expected to announce its first quarter results on Friday. The bank is 16.6 percent owned by Bank of America (BAC.N).

Analysts expected the results to decline by around 18 percent, according to the average forecast of analysts at Macquarie and UBS.

CCB's Hong Kong-listed shares were down a penny to HK$4.37 in late trading on Friday. The shares have risen 3.3 percent so far this year through Thursday, trailing a 5.7 percent gain on the bench mark Hang Seng Index .HSI.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: China Construction Bank 0939

Postby winston » Sat Apr 25, 2009 6:54 pm

China Construction Bank 1Q profit down 18%

BEIJING - China Construction Bank Ltd, the country's second-biggest commercial lender by assets, said on Saturday its first quarter profit fell 18 per cent as interest rate cuts by China's central bank hurt revenues.

Profit for the three months ending March 31 was 26.3 billion yuan (US$3.8 billion), or 0.11 yuan per share, the Beijing-based lender said.

Interest income fell 6.55 per cent from the same period last year to 50.9 billion yuan ($7.4 billion), the bank said.

It said margins narrowed as the bank repriced loans after China's central bank cut lending and deposit rates repeatedly beginning in September amid government efforts to spur economic growth and shield China from the global downturn.

Fee and commission income rose 10.4 per cent from a year earlier to 11.8 billion yuan, the bank said.

China's mostly state-owned banking industry is isolated from global financial flows and has avoided the mortgage-related turmoil that is battering Western institutions.

China Construction Bank, the second-biggest commercial lender behind Industrial & Commercial Bank of China Ltd, said its assets rose 14 per cent during the quarter to 8.7 trillion yuan. -- AP
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: China Construction Bank 0939

Postby winston » Wed May 06, 2009 11:30 am

BoA mulls US$8b CCB stake sale

HONG KONG - Bank of America, which may need to raise an additional US$34 billion in capital according to a source familiar with the results of a US government stress test, would gain an extra dividend of US$200 million if it holds its stake in China Construction Bank until June 17, the Financial Times said on Wednesday.

Source: Business Times
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: China Construction Bank 0939

Postby winston » Fri Aug 07, 2009 8:03 am

CCB to Reduce New Lending by 70% as Risks ‘Evident,’ Zhang Says

Aug. 7 (Bloomberg) -- China Construction Bank Corp. will reduce new lending by about 70 percent in the second half after a surge in loans in the first six months increased credit risk, President Zhang Jianguo said in an interview.

CCB, the world’s second-largest bank by market value, plans to extend about 200 billion yuan ($29 billion) of loans, down from 708.5 billion yuan in the first half, said Zhang, 54. The company’s new lending through June 30 was 42 percent more than for all of 2008.

“We noticed that some loans didn’t go into the real economy,” Zhang said in an interview yesterday at the bank’s headquarters in Beijing. “I feel that some industries are expanding too rapidly. For example, housing prices are rising too fast, and housing sales are growing too fast.”

Zhang’s comments add to evidence that Chinese banks may curtail lending after they advanced a record $1.1 trillion of new loans in the first half, almost equivalent to India’s gross domestic product last year. The benchmark Shanghai Composite Index has rallied 84 percent in 2009 and real estate and land prices have rebounded, fueling concern that loans meant for infrastructure projects are being used for speculation.

China spent about $650 billion cleaning up its banking system over the past decade after years of state-directed lending caused a pile-up of bad debts. Excess capacity in some industries and a property bubble has led to increased risks for banks, said Zhang.

“Our experience is, a period of time after rapid economic growth and rapid bank lending growth, problems will emerge gradually,” he said. “The risk is evident.”

Overseas Acquisition

While slowing loans at home, Zhang said he plans to expand abroad to close a gap with Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. Shares of Construction Bank have gained 40 percent in Hong Kong and 64 percent in Shanghai this year, swelling its market value to $181 billion.

Construction Bank is in advanced talks about an acquisition in Asia outside mainland China, Zhang said. The deal has gotten regulatory approval and may close in the next two to three months, he said. Zhang declined to identify the target or give the size of the deal.

The bank, with $186 billion of cash, hasn’t made any acquisitions abroad since August 2006. That’s when the Chinese lender bought Bank of America Corp.’s Hong Kong and Macau unit for $1.25 billion, gaining 17 outlets.

“Our disadvantage is that our overseas development isn’t adequate,” Zhang said. “We didn’t grasp enough acquisition opportunities in the past few years.”

Dollar ‘Best Currency’

Revenue from outside mainland China accounted for 1.7 percent of Construction Bank’s total in 2008. The bank has outlets in New York, London and a representative office in Sydney, and is seeking a banking license in Vietnam, Zhang said. Larger rival ICBC has spent more than $6 billion on acquisitions in Indonesia, Macau and South Africa in the past two years.

Construction Bank is also seeking to buy “close to” 50 percent of China Cinda Asset Management Corp., one of the four firms set up by the government in 1999 to clean up banks’ balance sheets after they racked up bad debts, said Zhang. The bank needs approval from the finance ministry and from regulators for the purchase, he said. Cinda is fully state owned.

Zhang expressed confidence in the dollar, saying it won’t be supplanted as the world’s reserve currency anytime soon. Chinese policy makers have said they favor an eventual shift in the global currency reserve system away from the dollar, suggesting wider use of an International Monetary Fund unit of account.

“For quite a few decades, the U.S. dollar is the best currency for international reserves, the currency to be used among us in the markets,” Zhang said.

Infrastructure Financier

Construction Bank is one of the main beneficiaries of demand for infrastructure loans induced by China’s 4 trillion yuan economic stimulus package. Established in 1954 to fund building of roads, bridges, dams and other infrastructure, it was the nation’s biggest mortgage lender until the first half of 2008, when ICBC pushed it to second place.

China’s total outstanding loans climbed 34 percent from a year earlier to 37.7 trillion yuan as of June 30. Credit growth will slow from that “unsustainable” pace to about 15 percent in 2010 as the strengthening economy reduces the need for loan support, Goldman Sachs Group Inc. said in a report last month.

Construction Bank grew loans by the least among China’s four largest lenders in the first half. Bank of China, the nation’s third-largest, led expansion with 901.9 billion yuan of new advances.

“Self-discipline is probably what Chinese banks need at this moment,” said May Yan, a Hong Kong-based analyst at Nomura International HK Ltd. “It will do them more good than harm in the long run.”
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

Re: China Construction Bank 0939

Postby winston » Fri Aug 21, 2009 9:17 pm

China Construction Bank Profit Drops on Loan Margins (Update2)
By Kelvin Wong and Sophie Leung

Aug. 21 (Bloomberg) -- China Construction Bank Corp., the nation’s second-biggest lender by market value, said first-half profit fell 4.9 percent on contracting loan margins.

Net income declined to 55.8 billion yuan ($8.2 billion), or 0.24 yuan a share, from 58.7 billion yuan, or 0.25 yuan a share, a year earlier, the Beijing-based bank said in a statement to Hong Kong’s stock exchange today. The profit beat the 52.9 billion yuan median estimate of seven analysts surveyed by Bloomberg News.

Construction Bank, battling lower lending margins and concerned about the risk of rising defaults, plans to make fewer loans in the second half. Chinese banks handed out a record $1.1 trillion of new loans in the first half to support the nation’s $585 billion economic stimulus package.

Margin contraction is “the biggest drag on the top line,” Credit Suisse Group AG’s Hong Kong-based analysts Sherry Lin and Daisy Wu wrote in an Aug. 13 report.

Construction Bank’s Hong Kong-listed shares have risen 37 percent this year, compared with the 40 percent gain in the local benchmark Hang Seng Index. The stock fell 0.9 percent to HK$5.84 today.

Net interest income, or revenue from borrowers minus interest paid to depositors, dropped 7.8 percent to 102.5 billion yuan from 111.1 billion yuan. Net interest margin, a measure of loan profitability, narrowed to 2.46 percent from 3.29 percent a year earlier, Construction Bank said.

Monitor Lending

“The rapid growth of lending may lead to greater pressure on controlling” non-performing loans, the lender said in the filing today. “The group will monitor the size and pace of lending, sticking to its credit differentiation policy.”

Construction Bank extended 708.5 billion yuan of new loans in the first half and plans to reduce that by 70 percent to about 200 billion yuan in the second half to avoid a surge in bad debt, President Zhang Jianguo said in an Aug. 7 interview.

“We fundamentally welcome Construction Bank taking the lead in gradually slowing down sector loan growth,” Goldman Sachs Group Inc. analysts including Ning Ma and Roy Ramos wrote in an Aug. 7 report. “They have been more disciplined in growing loans than other banks.”

Construction Bank’s net fees and commissions from services such as credit cards, custodian services and mutual fund sales, rose 16 percent to 23.4 billion yuan from 20.2 billion yuan.

The lender set aside 12.8 billion yuan in provisions against bad debts during the first half, down 7.8 percent from a year earlier.

http://www.bloomberg.com/apps/news?pid= ... NWFi.cuhGU
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118535
Joined: Wed May 07, 2008 9:28 am

PreviousNext

Return to C

Who is online

Users browsing this forum: No registered users and 3 guests