China Banks:Seeing the value

Stock price performance of the China banks depends heavily on the progress of reform of the current economic development model and local government fiscal mechanism. The more reform, in our view, the better will be the performance of the banks. Minsheng Bank is best positioned for the challenges from interest rate liberalization and internet financing. BOC and CITIC are likely to be turnaround stories in 2014F as their bottom-line growth picks up. ICBC and ABC are defensive plays in a time of market turbulence