China Banks: Income Opportunities Compensate for Balance Sheet Risks.

Global Bank Equity Specialist, Creative Portfolios

Paul Hollingworth

Global Bank Equity Specialist

Creative Portfolios

Equity Bottom-Up

<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-nanjing-co-ltd" target="_blank" data-smartkarma-citation="entities:683:1" rel="noopener">Bank Of Nanjing Co Ltd A (601009 CH)</a> .</p>
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<p>Our conviction is that shares of ICBC represent a lower risk at a cheaper price.</p>
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<p>The out performance of bank of Nanjing versus ICBC is beginning to reverse. We would follow this trend.</p>

We advocate a Long-Short trade over a 12 month horizon in ICBC (H) (1398 HK) versus Bank Of Nanjing Co Ltd A (601009 CH) .

Our conviction is that shares of ICBC represent a lower risk at a cheaper price.

The out performance of bank of Nanjing versus ICBC is beginning to reverse. We would follow this trend.

Long-Short Pair Trade: ICBC - Bank of Nanjing