China Minsheng Banking Corp Ltd Class H
01988: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$4.60 | Gwb | Dcbg |
CMBC Reported Better-Than-Peer Net Profit Growth on Improved Credit Quality
Business Strategy and Outlook
China Minsheng Banking Corp.'s credit risk has showed gradual improvement 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 few years. CMBC's multiyear restructuring and derisking translated to declines in the nonperforming loan ratio and lower bad debt formation rate.