Global Bank Equity Specialist, Creative Portfolios

Paul Hollingworth

Global Bank Equity Specialist

Creative Portfolios

Equity Bottom-Up

<div><p>We advocate a Long-Short trade over a 12 month horizon in <a href="https://www.smartkarma.com/entities/ind-comm-bk-of-china-h" target="_blank" data-smartkarma-citation="entities:1119:1" rel="noopener">ICBC (H) (1398 HK)</a>  versus <a href="https://www.smartkarma.com/entities/bank-of-tianjin-co-ltd" target="_blank" data-smartkarma-citation="entities:22648:1" rel="noopener">Bank Of Tianjin (1578 HK)</a> </p></div><div><div><p>Our conviction is that shares of ICBC represent a much lower financial risk at a very fair price while Tianjin looks like a value trap.</p></div></div><div><p>The ytd out performance of Bank of Tianjin versus ICBC began to reverse in September. We would follow this trend.</p></div>

We advocate a Long-Short trade over a 12 month horizon in ICBC (H) (1398 HK)  versus Bank Of Tianjin (1578 HK) Our conviction is that shares of ICBC represent a much lower financial risk at a very fair price while Tianjin looks like a value trap.The ytd out performance of Bank of Tianjin versus ICBC began to reverse in September. We would follow this trend.

China Banks: Long ICBC, Short Bank of Tianjin