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2009-1-20 10:28:00 a.m. HKT, XFNA
DJ MARKET TALK: China Banks Suffer After Citic Bank's Weak 4Q
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| 0952 [Dow Jones] Citic Bank (0988.HK) bid down 5.7% at HK$2.65 at pre-open, as positive 2008 earnings guidance masking sharp on-quarter earnings decline in 4Q, likely in part due to bank raising provision coverage ratio to 150%. H-share bank peers suffer collateral damage; China Merchants Bank (3968.HK) indicated down 4.8% at HK$12.00, Bank of Communications (3328.HK) off 3.7% at HK$4.95. Big 3 not immune: ICBC (1398.HK) down 5.8% at HK$3.25, China Construction Bank (0998.HK) down 3.6% at HK$3.80, Bank of China (3988.HK) down 3.0% at HK$1.94. DBS Vickers keeps Cautious view on Chinese banking sector, as "investors will continue to worry about the fundamental outlook going forward, in particular regarding NIM pressure and asset quality risks amid sharply deteriorating economy." Also, concerns over stake sales over sector shares may reemerge after New York Post reports American Express (AXP) plans to sell its ICBC stake when restriction ends in three months. (RLI) Contact us in Hong Kong. 852 2802 7002; MarketTalk@dowjones.com
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(Delayed by 1 hour)
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