Morgan Stanley downgrades ratings of China’s four largest banks: report

Source:Global Times Published: 2019/5/7 22:13:40

Morgan Stanley downgrades ratings of country’s four largest banks: report

File photo: IC

Morgan Stanley reportedly lowered its ratings on some shares of China's four biggest banks on Tuesday, a move that surprised many industry insiders. It also upgraded the ratings of A shares of Ping An Bank and China Everbright Bank.

According to a report from domestic news site on Tuesday, citing a Morgan Stanley research paper, the bank downgraded the A-share ratings of Industrial and Commercial Bank of China (ICBC) and China Construction Bank (CCB), and lowered the ratings of both A shares and H shares of Agricultural Bank of China and Bank of China.

However, analysts at some securities traders, such as Orient Securities (Hong Kong), disagreed with the downgrades, citing reasons such as steady profit growth and falling bad loans, the report said.

All four banks saw steady net profit growth and falling bad loan rates in the first quarter of 2019, compared with a year earlier, according their financial reports.

ICBC remained the most profitable bank among the "Big Four" banks, with net profit of about 82.69 billion yuan ($12.18 billion), a year-on-year increase of 4.58 percent. CCB reported profit of 76.9 billion yuan in the first quarter, a year-on-year increase of 4.2 percent.

China's stock market has been volatile so far this week, rebounding on Tuesday after the Shanghai index experienced the biggest fall in about three years on Monday. At the close on Tuesday, the Shanghai Composite Index was up 0.7 percent at 2,926.39, and the blue-chip CSI300 index was up 1 percent.

Newspaper headline: Morgan Stanley downgrades ratings of country’s four largest banks: report


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