News

China's banks are shedding bad loans

Bank_of_China_towerChinese banks are predicted to enjoy share price growth as bad loans decline as a proportion of overall lending. The forecast by Douglas Morton, head of research, Asia, for Northern Trust Capital Markets, is based on data that says Chinese banks' non-performing loans (NPLs) are falling, as a proportion of overall loans, for the first time since 2011. “NPL growth was the primary catalyst for Chinese banks to trade at a discount to global peers,” said Morton. “The current c.40% discount is looking increasingly unsustainable for the most liquid sector in Asia.” Morton also observed that the average return on equity for Chinese banks was 11.6% compared with an average of 9% for global peers. “We remain buyers of Bank of China and HSBC,” he said. ©2018 funds global asia

Executive Interviews

INTERVIEW: Operational challenges

Jun 09, 2018

Caroline Higgins of Northern Trust tells George Mitton about A-share inclusion, ETF Connect and why Cayman funds predominate in the region.

INTERVIEW: Making a name

Apr 18, 2018

Formed by a merger in 2012, Old Mutual Global Investors was little-known in Asia. Carol Wong, managing director for Asia-Pacific, is changing that. She talks to George Mitton.

Roundtables

SINGAPORE ROUNDTABLE: Optimism versus caution

Oct 23, 2018

The impact of financial technology, developments in Asian passporting and the promise of new markets in Thailand were among the topics discussed by our panel. Chaired by George Mitton in Singapore.

HONG KONG ROUNDTABLE: a long-term project

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Our panel discussed robo-advisers, ETF Connect, and why the mutual recognition of funds (MRF) scheme will take time to develop. Chaired by George Mitton in Hong Kong.