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2009-6-23 11:21:00 a.m. HKT, XFNA
DJ MARKET TALK: HK Banking Asset Quality Stabilizing - Citi
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| 1107 [Dow Jones] HK banking asset quality is stabilizing, with May bankruptcy petitions dropping to lowest in 5 months, but lack of credit growth, dismal wealth management fees, margin pressure still weigh on sector, Citigroup says. House prefers BOC HK (2388.HK) on "reasonable" valuation, potential MBS writebacks, bigger mortgage, stockbroking operations, to benefit from CNY trade settlement. Also likes Dah Sing Banking (2356.HK), Dah Sing Financial (0440.HK) on "cheap valuations," lower credit costs. Adds, possible provision for Lehman minibonds is near-term earnings drag for sector, but impact on book value should be less than 2%. Report doesn't state ratings. BOC HK off 3.5% at HK$12.52, DSB down 1.6% at HK$7.28, DSF off 1.0% at HK$29.85. HSI down 3.6% (ARP) Contact us in Hong Kong. 852 2802 7002; MarketTalk@dowjones.com
(Delayed by 1 hour)
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