China Construction Bank 0939

[winston]

Not vested. From Phillips:-


Risks

The growth of profits is affected by sustainable decrease of NIM.

Share price increased significantly recently, and recorded the highest price in last 12 months, which increased by around 50% from the beginning of 2009, and will face pressures of decrease of price more and more in the short term.


Valuation

In all, the performance of CCB is better than our expectation, which owns stable development of its business, quite strong ability of risk control and good quality of loans.

We estimate the 12-month target price of CCB is HK$7.73, around 13% higher than its latest closing price, equivalent to P/E 15X, P/B 3X 2009 and P/B 2.6x 2010 for CCB, we give it Hold rating.

[winston]

Not vested. From UOBKH:-


Risks
Primary risk is worse-than-expected asset quality deterioration and NIM compression.


Valuation/Recommendation.

Maintain BUY as CCB remains one of the safest banks. Despite the continued NIM compression in 3Q09, CCB reported a strong set of results, particularly with respect to strong cost control, continued improvement in asset quality, strong fee income growth as well as increasing capital strength.

CCB’s earnings momentum will continue to improve in 4Q09 and the momentum will extend into 2010 with the expectation of rising interest rates.

Given CCB’s coverage ratio of 161% and its Tier 1 ratio of 9.57%, it is also one of the most defensive banks in China. We raise our 2009-10 net profit estimates by 5% and 3% respectively and also lift our target price by 7% to HK$8.00, reflecting target P/NTA of 2.46x on ROE of 20.5%, COE of 11%, growth of 4.5% and equity multiplier of 16x. Maintain BUY.

[Muhajir]

-Vested



Our pivot point is at 6.82.

Our preference: the downside prevails as long as 6.82 is resistance.

Alternative scenario: the upside breakout of 6.82 would call for 6.99 and 7.1.

Comment: the RSI is below 30. It could either mean that the stock is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the share stands below its 20 and 50 day MA (standing respectively at 7.07 and 7.23). Finally, China Construction Bank-H is trading below its lower daily Bollinger band (standing at 6.72).

Supports and resistances:
6.99 *
6.82 **
6.75
6.61 last
6.39
6.29 **
6.18 *

[Muhajir]

-Vested

China Construction Bank-H ST: the RSI is oversold


Our pivot point stands at 6.5.

Our preference: the downside prevails as long as 6.5 is resistance.

Alternative scenario: above 6.5, look for 6.72 and 6.86.

Comment: the RSI is below 30. It could either mean that the stock is in a
lasting downtrend or just oversold and therefore bound to retrace (look for
bullish divergence in this case). The MACD is below its signal line and
negative. The configuration is negative. Moreover, the share stands below its
20 and 50 day MA (standing respectively at 6.9 and 7.13). Finally, China
Construction Bank-H is trading below its lower daily Bollinger band (standing
at 6.27). China Construction Bank-H is currently trading near its 52 week low
at 5.92 reached on 06/07/10.

Supports and resistances:
6.72 *
6.5 **
6.41
6.27 last
5.94
5.81 **
5.68 *

Source: Tradingcentral.com

[Muhajir]

- Vested



6.68 is our pivot point.

Our preference: the downside prevails as long as 6.68 is resistance.

Alternative scenario: the upside breakout of 6.68 would call for 6.92 and 7.05.

Comment: the RSI is below 30. It could either mean that the stock is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the stock is trading under both its 20 and 50 day MA (standing respectively at 6.87 and 7.11).

Supports and resistances:
6.92 *
6.68 **
6.59
6.49 last
6.02
5.89 **
5.76 *

[Muhajir]

-Still Vested

DJ China Highway Developer Says Unable To Repay Debt - Report
2011-06-28 15:43:00

BEIJING (Dow Jones)--A Yunnan provincial government highway company has told its bankers it would be unable to repay some of its CNY90 billion in debts, underscoring concerns over local government borrowings in China, Caixin Media reported Monday, citing unnamed bank and government officials.

Caixin said Yunnan Highway Development& Investment Co. sent its major creditors a letter in April notifying them that it might not be able to repay principal on the loans though it would be able to pay interest.

The report said the company, which builds and operates highways in the southwestern province, was unable to make payments because of a lack of cashflow from highway management and it hadn't obtained all of the government subsidies anticipated.

Yunnan Highway Development had received credit from more than 10 banks, including China Development Bank, China Construction Bank Corp.(0939.HK) and Industrial and Commercial Bank of China (ICBAF), Caixin reported.

Caixin said the banks have reported the matter to the Yunnan provincial government, which promised to resolve the issue by urging the company to withdraw its warning letter and by offering the company subsidies and a CNY2 billion loan from provincial fiscal revenue.

It was unclear if the problem has been resolved. The company needs to make around CNY10 billion in payments in the second half of the year, according to Caixin.

Yunnan Highway had no immediate comment when contacted by Dow Jones Newswires.

The case has ignited fears that banks could face mountains of bad debt as a result of a two-year lending binge encouraged by Beijing, as it tried to stimulate the domestic economy in the face of a global recession.

China's local governments are usually barred from borrowing from banks or issuing bonds directly. Instead, they often set up companies like Yunnan Highway to raise money for costly infrastructure projects.

China's National Audit Office said Monday that outstanding local government debt totaled some CNY10.7 trillion ($1.65 trillion), or about 27% of China's gross domestic product, at the end of last year.

The disclosure stemmed from a major effort by Beijing to assess the extent of local government debt and find solutions to the problem.

Banks are concerned that other local government financing companies could be unable to repay their creditors and might follow the lead of Yunnan Highway.

source: http://www.caing.com

[winston]

Bank of America to sell China bank stake for $8.3 billion

CHARLOTTE, N.C./HONG KONG (Reuters) - Bank of America Corp is selling about half its stake in China Construction Bank for $8.3 billion, in its latest effort to shed assets and boost capital.

http://www.reuters.com/article/2011/08/ ... Name=usdai

[winston]

not vested

Bank of America may cut mainland stake

Bank of America Corp is considering further paring its stake in China Construction Bank Corp, just weeks after it sold a big chunk of the mainland lender.

Source: SCMP

[winston]

not vested

China Construction Bank (0939.HK) is down 2.5% at HK$5.17, due to the placement of 400 million shares by an unnamed shareholder.

Source: Dow Jones Newswire

[winston]

One more day and they would be able to get 5.5% more ie. HK$140m more ?

DJ Singapore Hedge Fund Broad Peak Sold $267 Mln China Construction Bank Shares - Report

HONG KONG (Dow Jones)--Singapore-based hedge fund Broad Peak sold US$267 million worth of shares in China Construction Bank Corp. (0939.HK) on Wednesday, the Mingpao Daily reported Thursday, citing unnamed sources.

Broad Peak sold the shares at HK$5.19 each, near the bottom of an indicative price range of HK$5.17-HK$5.30, the paper reported.

According to a term sheet seen by Dow Jones Newswires on Tuesday, a shareholder in China Construction Bank was selling 400 million of the bank's Hong Kong-listed shares in a block trade that could raise up to US$272 million.

The term sheet didn't name the shareholder. Deutsche Bank AG was the sole bookrunner on the block trade, the term sheet said.

In 2007, Singapore government investment firm Temasek Holdings Pte. Ltd. emerged as a major backer of Broad Peak, which was launched with US$1 billion of assets by the former co-head of Goldman Sachs' Asian securities business.

Newspaper website: http://www.mingpaonews.com/

Source: Dow Jones Newswires