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2009-7-3 11:48:00 a.m. HKT, XFNA
DJ MARKET TALK: Fund Manager Uneasy About China Banks' Lending
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| 1124 [Dow Jones] HK-based fund manager cautious about China banks despite recent sector re-rating underpinned by easing concerns about falling NIM, rising NPL; he's particularly uneasy about record-breaking pace of new lending by Chinese banks, with Influential Caijing Magazine reporting yesterday new CNY lending by China's 4 biggest banks totaled CNY497 billion in June, nearly double May's level. "I'm surprised more analysts haven't thrown up their hands in horror at this. Corporates with any sense have shelved expansion plans, these loans are all going into town hall white elephant projects and speculation in property, stocks, commodity hoarding... It's a recipe for a balance sheet bloodbath," he says. Sector pulling back today on profit-taking; China Construction Bank (0939.HK) down 0.8% at HK$5.97; stock +19.2% in June vs HSI +1.1%.(RLI) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(Delayed by 1 hour)
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