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Nomura forecasts rebound for China banking stocks

Date: 04 Feb 2010

The Japanese bank says concerns over potential policy tightening are overdone and that market declines have already priced in negative impact from interest rate rises. It likes the earnings visibility and valuations of bank stocks.

Keywords (click to search): [Nomura] [China] [bank stocks] [Lucy Feng] [ICBC] [CMB]

Aaron Pan
Recent declines in the Shanghai and Shenzhen bourses are a buying opportunity and investors should accumulate Chinese banking stocks, advises Nomura.

Last month, Chinese authorities moved to curb domestic lending by increasing the reserve requirement ratio for banks in two hikes to 16.5%.

The move was interpreted as a signal that Beijing is ready to start tightening monetary policy and withdraw fiscal stimulus measures.

Equity investors reacted in jittery fashion, and China has become the...

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