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Global Bank Equity Specialist, Creative Portfolios

Paul Hollingworth

Global Bank Equity Specialist

Creative Portfolios

Thematic (Sector/Industry)

China Financials / Thematic (Sector/Industry)

<p>Latest Q320 data out of China show a stolid picture:</p><div>•Moderate reduction in ROA &amp; ROE;</div><div>•A modest narrowing of NIM;</div><div>•A marginally better Efficiency ratio;</div><div>•Slight erosion in Capital Adequacy, somewhat below regional entities;</div><div>•Slightly Improved headline Asset Quality, well better than regional peers;</div><div>•Subtle rise in LDR;</div><div>•Somewhat higher Provisioning, well above regional peers;</div><div>•Mediocre median PH Score™.</div><div></div><div class="content-highlight">The PH Score™ is a fundamental momentum-quantamental score that scores banks according to changes in value-quality. The Score encompasses Profitability, Operating Efficiency, Liquidity, Capital, Asset Quality, and Coverage as well as a valuation variable. Scores lie between 0 and 10, with higher scores representing more positive signs. The PH Score™ was back tested over 2007-17 for global banks and conclusively shows progressively higher returns across quintiles ranked by Score. </div>

Latest Q320 data out of China show a stolid picture:•Moderate reduction in ROA &amp; ROE;•A modest narrowing of NIM;•A marginally better Efficiency ratio;•Slight erosion in Capital Adequacy, somewhat below regional entities;•Slightly Improved headline Asset Quality, well better than regional peers;•Subtle rise in LDR;•Somewhat higher Provisioning, well above regional peers;•Mediocre median PH Score™.The PH Score™ is a fundamental momentum-quantamental score that scores banks according to changes in value-quality. The Score encompasses Profitability, Operating Efficiency, Liquidity, Capital, Asset Quality, and Coverage as well as a valuation variable. Scores lie between 0 and 10, with higher scores representing more positive signs. The PH Score™ was back tested over 2007-17 for global banks and conclusively shows progressively higher returns across quintiles ranked by Score. 

China Banks: Despite Low Valuations, Trends Are Static-Soft