Therefore, the bank is expected to be more stable in profit but will face higher exchange risk and gets less benefits from the RMB currency rise. What made the situation more untenable was the fact that in another category of hardcore steroid addicts one of the patients succumbed to septic shock and sadly passed away after just 26 hours of undergoing therapy. One group is responsible for the boutique selection alpha, another for sector alpha. If a fancy stock in a fancy sector is currently giving huge profits think whether this performance is sustainable in the next three to five years. Note : From the above, the China Construction Bank is operating at a higher loans and deposits from which they are more likely to generate more profits and better economy of scale. Therefore, their profits are closely related to the economics development of China. Lazy Value Investing: Let's start with the easiest and most simplistic definition, and the one that many data services and academics continue to use, simply because it is quantifiable and convenient, and that is to base whether you are a value or growth investor on whether the stocks you buy trade at low or high multiples of earnings or book value.
The market was focused on the possibility of a European banking crisis during much of 2011. No, the bear case for stocks in 2012 does not rest with Europe. Banking is an important industry in modern economy. Large size companies in banking industry in the long run should be able to outperform smaller size ones as banking is a capital intensive industry. Bank of Communictions is operating in a smaller size than the big four and offers more general and customized banking services to the public. The largest stake could be taken up by foreign investors should not be more than 20%. This is why HSBC could only take up a 19.99% share in the Bank of Communications. Note : The interest rate in China is controlled by the People's Bank of China which is the central bank. In the coming year, the chinese banks are expected to give a higher Net Interest Spread and Net Interest Margin as the central bank has raised the loan rate but maintain the deposit rate unchanged. CCB develop their major business within China and their major loans are for infrastructure contruction and real estates within China.