China Minsheng Banking Corp Ltd Class H
01988: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$9.30 | Gdm | Vqr |
CMBC’s Assets Cleanup Was Making Progress Despite Lingering Challenges in Credit Quality
Business Strategy and Outlook
China Minsheng Banking Corp's, or CMBC's, credit risk still faces challenges after years of restructuring. The bank was once a leader in China’s micro- and small enterprise, or MSE, financing market. The fragility of small private enterprises translated to a painful business restructuring for CMBC over the past six years. These difficulties are compounded by ongoing regulatory tightening to crack down on shadow bank credits and reduce wholesale funding.