China Minsheng Banking Corp Ltd Class A

600016: XSHG (CHN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	¥6.20	Prs	Fchsd

China Minsheng’s Assets Cleanup Made Progress Despite Lingering Credit Quality Challenges

Iris Tan

Aug 29, 2022

No-moat China Minsheng Banking, or CMBC's, second-quarter results showed a continuation of higher-than-peer pressures on both loan growth and net interest margin, or NIM, as the bank struggled to derisk its loan book amid surging economic headwinds. Management’s two-year reform to clean up asset risks and lower fund costs in 2021 and 2022 was complicated by sluggish loan demand and growing risks in retail-and property-related sectors. Given the results were largely in line with our expectation, we retain our fair value estimate of CNY 4.00 per A-share and HKD 4.50 per H-share.

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