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UBS Investment Research
Asia Equity Strategy
A trickle, not a torrent
Year-to-date equity flows modestly negative; no ‘capital flight’
Data from various sources suggests that inflows to Asia have slowed, but we are by
no means seeing ‘capital flight’ from the region. Outflows over the past 4 weeks
look to be small and nothing out of the ordinary versus history in Asia ex Japan.
Outflow from Asia/EM funding the DM outperformance?
A more important question is whether the outflow could accelerate if developed
markets (DM) continue to outperform. Looking at the data since 1990, it is rare
that Asia would see outflow whilst DM see inflows except during financial crises
and global bear markets. We are not expecting a reversal of last year’s flows.
India flow not as extreme as it appears; Indonesia back to Sep 2010
Adjusted for market performance, inflow into Indian equities in 2010 was the
highest amongst Asian markets at ~10% of market cap, which would imply the
greatest vulnerability to a reversal. That said, the inflow was in line with history
and reversals tend to be modest and short-lived in India ex-the financial crisis
(Chart below). Foreigner stockholdings in Indonesia are now almost back to the
pre-Q4 2010: from a flow perspective the market appears to have adjusted the
most.
Strong inflow into Korea/Taiwan unlikely to continue
Whilst flows into India and Indonesia have been weak over the past 3 months, they
have been strong in Korea and picked up significantly in Taiwan, which have been
reflected in the relative performance. Flows to neither market (KR/TW) look
extreme; however, it would be unusual for them to continue in the current pace.
The recent underperformance of Asia ex Japan equities versus developed
markets, on the back of strong G7 economic data and ongoing inflation concerns
in Asia, are leading to many questions (and fears) about a sustained reversal of
fund flows into this region, and in turn, further underperformance from Asian
equities. We explore these topics in this note. First, we look at this from a
regional perspective – how much funds have flowed out of Asia ex Japan yearto-
date, and how this compares with 2010’s inflows. Related to that, we look at
periods of outflows from Asian equities, when flows into developed markets are
strong. Is underperformance by Asia likely to lead to flows back to developed
markets? Finally, we look at the flow into and out of the four major markets that
we are receiving most questions about at the moment – India and Indonesia, and
Korea and Taiwan. Where are the foreign flows and how do these stack up
relative to history?
While flows are starting to reverse on some measures, we are not seeing
calamitous selling. More importantly, we also find historically that when the US
outperforms Asia in a rising market, there is little evidence of investors selling
Asian funds to ‘get overweight’ developed markets. More often, flows to Asia
just slow down. In other words, fears that the recent outperformance of the US
versus Asia will lead to a substantial reversal of flows in our view seem
overplayed.
At the country level, India’s flows, at 10% of market cap during 2010, were the
highest. If there is a foreign capital flight, this market looks most vulnerable.
The good news is that, historically, equity portfolio outflows have tended to be
moderate and shortlived affairs in India, with the exception of the global
financial crisis. In other words, strong inflows do not usually reverse. Taiwan’s
flows, very strong in the last quarter of the year, look unlikely in our opinion to
repeat themselves. We see no positive or negative in Korea’s flow data, which
has been steady and unspectacular for most of the last year, i.e. not vulnerable in
our opinion. Finally, the froth in inflows in September/October last year into
Indonesia has entirely reversed. From a flow perspective the Indonesian data
looks most interesting.
Regional flows – modest outflows
In recent weeks, flows have turned negative from Asia ex Japan. We look at this
in two ways. In Chart 1 we show data from Emerging Portfolio Fund Research
(EPFR) – an aggregator of mainly retail flows. This shows data into Asia ex
Japan funds (and ETFs) over the last few years, and we deflate it by market cap.
Because the individual week to week data can be quite jumpy, we take a four
week moving average of the data. As the chart shows, in recent weeks, the flows
have started to turn negative. But very modestly so. Clearly there has been a
moderation in the momentum but by no means is capital ‘fleeing’ Asian equities.
We see the same pattern from the individual stock market data of net purchases
of Asia equities by foreigners. This data is only available for India, Indonesia,
the Philippines, Korea, Taiwan and Thailand. The general trend is similar. As
we show in Chart 2, foreigner net purchases tapered off towards the end of 2010,
but we are not seeing significant outflows from the region.
The first point is that flows are very modestly negative, but there is not, as yet,
panic selling or calamitous outflows. One of the questions we have encountered
in recent weeks surrounds the fear that we are on the brink of major outflows –
that investors could turn major sellers of Asian equities to fund inflows to
developed markets, given their recent outperformance, better G7 economic data
and inflations fears here in Asia.
Looking back at US mutual fund data back to 1990, we see no evidence that this
actually happens when Asia underperforms the US, with the notable exceptions
of bear markets. In other words, if Asia keeps underperforming US equities, in a
rising market environment (or at least one that is not a global bear market), it is
not unreasonable to see US flows being positive, but Asian flows also positive
For sure, there is an asset allocation shift at the margin away from Asia to
developed markets that has mirrored the recent outperformance of developed
markets. But flows don’t tend to fully reverse and turn negative unless we are in
a major bear market.
More likely, what seems to be driving the US and other developed markets up, is
an asset allocation shift away from fixed income to developed equities – as the
data suggests. flows into fixed income funds in the US, emerging market
equity funds in the US and other equity funds (our broad proxy for developed
markets). This data is six weeks out of date but it makes a very obvious point
that while emerging market funds are not seeing record high inflows, nor are
they seeing outflows – that prize rests with fixed income funds, with a
corresponding shift into other equity funds.
This is a long way of saying that 1) the shift into developed equities need not
come at the expense of emerging equities (for us, Asian equities), 2) historically,
absent a bear market, flows don’t tend to be negative in Asia and positive in the
US. Put another way, if the developed markets continue to outperform Asia in
the coming weeks, this does not mean that flows must turn negative. In our
opinion, fears of a wave of substantial redemptions look over played.
India, Indonesia, Korea and Taiwan
The four markets that we’ve been receiving the most questions on in terms of
flows are India and Indonesia, and Korea and Taiwan.
Chart 5 shows the foreign purchases (according to stock exchange data) for all
four markets last year as a percentage of market cap, on a monthly basis. In US
dollar terms, India received 29.7bn, Indonesia 2.4bn, Korea 19.7bn and Taiwan
10.5bn.
As a percentage of market cap (Chart 6), the stock of flows (that is the flow
adjusted by performance) reached just over 10% in India, while Taiwan, lagging
for much of the year, saw sharp inflows in the last quarter of the year. Indonesia,
where flows were strong early in the year, saw foreign outflows toward the end
of the year.
Taking these in a historical context, trailing three month flows as a percentage of
market cap reached very high levels toward Q4 everywhere, but especially more
recently in Taiwan. A similar move over the coming months would seem
unlikely, if history is a guide in Taiwan. More interestingly to us, though the
three month flows (and annual flows) for India reached very high levels last year,
more recently they have tended to zero. With the exception of the global
financial crisis, there have only been very modest and short-lived outflows from
the Indian market. In other words, a full reversal of last year’s flows in India
also looks unlikely to us.
What are the takeaways? Firstly the flows into India, though they have very
modestly started to reverse, were high so this is the market the most vulnerable
to foreign capital flight of the four. The good news in India’s case is that the
more recent flows are very subdued, and historically, absent a major global bear
market, the strong inflows don’t tend to fully reverse. Secondly, after very high
short-term flows, it seems unlikely that Taiwan would see such strong flows
again in the next few months, all things being equal. Finally, Indonesia, which
saw very strong flows early in the year, has given back most of the flow that
entered into the country since September’s moves. This market of the three
looks most interesting to us from a flows perspective (on the positive side).
Strategy summary
While flows are starting to reverse on some measures, we are not seeing
calamitous selling. More importantly, we also find historically that when the US
outperforms Asia in a rising market, there is little evidence of investors selling
Asian funds to ‘get overweight’ developed markets. More often, flows to Asia
just slow down. In other words fears that the recent outperformance of the US
versus Asia will lead to a substantial reversal of flows seem over played.
At the country level, India’s flows, at 10% of market cap in 2010, were the
highest. If there is foreign capital flight, this market looks the most vulnerable.
The good news is that historically, equity portfolio outflows have tended to be
moderate and short-lived affairs in India, with the exception of the global
financial crisis. In other words, strong inflows do not usually reverse. Taiwan’s
flows, very strong in the last quarter of the year, look unlikely in our opinion to
repeat themselves. We see no positive or negative in Korea’s flow data, which
has been steady and unspectacular for most of the last year, i.e. not vulnerable in
our opinion. Finally, the froth in inflows in September/October last year into
Indonesia has entirely reversed. From a flow perspective the Indonesian data
looks most interesting (on the positive side).
Summary of our Strategy View
We remain positive on Asia ex-Japan equities in 2011. Earnings growth
forecasts look achievable and valuations are attractive, especially relative to
other assets. With liquidity now becoming a tailwind, growth less of a concern
and the domestic credit cycle set to improve, we think Asia could re-rate from
its current discount to its historical average PE, and potentially even a premium.
We upgrade our 2011 year-end MSCI Asia ex-Japan index target to 670 from
650, based on 13.7x forward PE, in line with the long-term average.
Our key country picks are Singapore and China. We are neutral the G7 proxy
markets of Taiwan and Korea. Valuations have moved back toward neutral, and
leading indicators have already stabilized. There is less compensation, unless
convinced one way or other of external demand (which we are not) for taking an
aggressive view on these markets now. We are generally underweight the more
expensive ASEAN markets, of which Indonesia with low bond yields, rising
inflation and huge foreign ownership looks the most vulnerable beyond
valuation. At the sector level, we are overweight financials, as the best proxy for
the liquidity theme and the credit cycle. We are underweight defensive sectors,
expecting them to underperform a rising market.
We believe there is an elevated risk that Asian markets could reach what we
would call a ‘euphoric’ state, fuelled by inappropriately loose monetary policy.
On the downside, inflation, sharply higher US bond yields and government
intervention are perceived risks.
Key Calls
What are Key Calls?
Key Calls represent our highest conviction single stock research ideas across the
region. The list is designed to generate bottom-up ‘alpha’ and is not a portfolio
that we use to express our top-down view. The key selection criteria are analyst
conviction, liquidity (>US$10m average daily turnover for most stocks) and a
strategy overlay in terms of the macro outlook, market positioning and risk
management
Table 2: UBS Key Calls
Company Rating Price
(LC)
PT
(LC)
Upside /
Downside
Mkt Cap
(US$ bn)
EPS
Growth
11e
PE 11e P/BV
11E Comments
LG Display
Buy 38200 50000 31% 12.3 16% 10.15 1.12
The potential panel order from Sony in 2011 should
allow LG Display to outperform other LCD stocks. The
company is also a beneficiary of growing tablet PC
demand.
Bangkok Bank
Buy 151.5 200 32% 9.4 14% 10.36 1.17
Prime beneficiary of new credit cycle in Thailand.
Demand for credit from corporations (over 70% of
BBL’s loan book) is likely to be the key driver in the 18
months.
Cheung Kong
Infrastructure
Buy 38.5 45.5 18% 11.1 43% 13.58 1.82
Well-positioned to acquire assets to improve ROE.
Cement business in HK an overlooked generator of
EBITDA.
China National
Building Materials
Buy 18.1 30 66% 6.3 61% 8.54 1.99
Beneficiary of government policy to consolidate supply
and dampen property prices via increasing housing
supply. H-share placement has alleviated concerns
over gearing. EV/ton valuation at historical low.
OCBC
Buy 9.64 11.3 17% 25.3 4% 13.08 1.67
OCBC should benefit more from the strong liquidity in
Singapore via its Wealth Management Business.
Private banking has better growth and profitability and
thus should help command a valuation premium.
Shriram Transport
Finance
Buy 680 950 40% 3.4 31% 10.23 2.64
SHTF Is the only established player in financing for
second-hand commercial vehicles in India .It has
around 20-25% market share in a market which is
expected to grow & and has high barriers to entry.
Lanco Infratech Buy 32.95 105 219% 1.7 105% 8.43 1.74
Strong execution track record in building power plants
underappreciated. We est. new projects could offer
Rp35 upside to the current share price
Sun Hung Kai P.
Buy 124.3 225.9 82% 41.0 21% 16.08 1.22
A sector leader that commands premium pricing
(superior profitability); income stream from commercial
properties holding underappreciated; large landbank
holder and a beneficiary of the credit upcycle in Hong
Kong
Industrial &
Commercial Bank of
China
Buy 5.74 7.7 34% 246.2 11% 11.20 2.15
Strong capital position and provisioning buffer, rising
net interest margin and healthy, albeit sequentially
slower, loan growth.
Source: UBS (prices as of 9th February 2011)
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
UBS Investment Research
Asia Equity Strategy
A trickle, not a torrent
Year-to-date equity flows modestly negative; no ‘capital flight’
Data from various sources suggests that inflows to Asia have slowed, but we are by
no means seeing ‘capital flight’ from the region. Outflows over the past 4 weeks
look to be small and nothing out of the ordinary versus history in Asia ex Japan.
Outflow from Asia/EM funding the DM outperformance?
A more important question is whether the outflow could accelerate if developed
markets (DM) continue to outperform. Looking at the data since 1990, it is rare
that Asia would see outflow whilst DM see inflows except during financial crises
and global bear markets. We are not expecting a reversal of last year’s flows.
India flow not as extreme as it appears; Indonesia back to Sep 2010
Adjusted for market performance, inflow into Indian equities in 2010 was the
highest amongst Asian markets at ~10% of market cap, which would imply the
greatest vulnerability to a reversal. That said, the inflow was in line with history
and reversals tend to be modest and short-lived in India ex-the financial crisis
(Chart below). Foreigner stockholdings in Indonesia are now almost back to the
pre-Q4 2010: from a flow perspective the market appears to have adjusted the
most.
Strong inflow into Korea/Taiwan unlikely to continue
Whilst flows into India and Indonesia have been weak over the past 3 months, they
have been strong in Korea and picked up significantly in Taiwan, which have been
reflected in the relative performance. Flows to neither market (KR/TW) look
extreme; however, it would be unusual for them to continue in the current pace.
The recent underperformance of Asia ex Japan equities versus developed
markets, on the back of strong G7 economic data and ongoing inflation concerns
in Asia, are leading to many questions (and fears) about a sustained reversal of
fund flows into this region, and in turn, further underperformance from Asian
equities. We explore these topics in this note. First, we look at this from a
regional perspective – how much funds have flowed out of Asia ex Japan yearto-
date, and how this compares with 2010’s inflows. Related to that, we look at
periods of outflows from Asian equities, when flows into developed markets are
strong. Is underperformance by Asia likely to lead to flows back to developed
markets? Finally, we look at the flow into and out of the four major markets that
we are receiving most questions about at the moment – India and Indonesia, and
Korea and Taiwan. Where are the foreign flows and how do these stack up
relative to history?
While flows are starting to reverse on some measures, we are not seeing
calamitous selling. More importantly, we also find historically that when the US
outperforms Asia in a rising market, there is little evidence of investors selling
Asian funds to ‘get overweight’ developed markets. More often, flows to Asia
just slow down. In other words, fears that the recent outperformance of the US
versus Asia will lead to a substantial reversal of flows in our view seem
overplayed.
At the country level, India’s flows, at 10% of market cap during 2010, were the
highest. If there is a foreign capital flight, this market looks most vulnerable.
The good news is that, historically, equity portfolio outflows have tended to be
moderate and shortlived affairs in India, with the exception of the global
financial crisis. In other words, strong inflows do not usually reverse. Taiwan’s
flows, very strong in the last quarter of the year, look unlikely in our opinion to
repeat themselves. We see no positive or negative in Korea’s flow data, which
has been steady and unspectacular for most of the last year, i.e. not vulnerable in
our opinion. Finally, the froth in inflows in September/October last year into
Indonesia has entirely reversed. From a flow perspective the Indonesian data
looks most interesting.
Regional flows – modest outflows
In recent weeks, flows have turned negative from Asia ex Japan. We look at this
in two ways. In Chart 1 we show data from Emerging Portfolio Fund Research
(EPFR) – an aggregator of mainly retail flows. This shows data into Asia ex
Japan funds (and ETFs) over the last few years, and we deflate it by market cap.
Because the individual week to week data can be quite jumpy, we take a four
week moving average of the data. As the chart shows, in recent weeks, the flows
have started to turn negative. But very modestly so. Clearly there has been a
moderation in the momentum but by no means is capital ‘fleeing’ Asian equities.
We see the same pattern from the individual stock market data of net purchases
of Asia equities by foreigners. This data is only available for India, Indonesia,
the Philippines, Korea, Taiwan and Thailand. The general trend is similar. As
we show in Chart 2, foreigner net purchases tapered off towards the end of 2010,
but we are not seeing significant outflows from the region.
The first point is that flows are very modestly negative, but there is not, as yet,
panic selling or calamitous outflows. One of the questions we have encountered
in recent weeks surrounds the fear that we are on the brink of major outflows –
that investors could turn major sellers of Asian equities to fund inflows to
developed markets, given their recent outperformance, better G7 economic data
and inflations fears here in Asia.
Looking back at US mutual fund data back to 1990, we see no evidence that this
actually happens when Asia underperforms the US, with the notable exceptions
of bear markets. In other words, if Asia keeps underperforming US equities, in a
rising market environment (or at least one that is not a global bear market), it is
not unreasonable to see US flows being positive, but Asian flows also positive
For sure, there is an asset allocation shift at the margin away from Asia to
developed markets that has mirrored the recent outperformance of developed
markets. But flows don’t tend to fully reverse and turn negative unless we are in
a major bear market.
More likely, what seems to be driving the US and other developed markets up, is
an asset allocation shift away from fixed income to developed equities – as the
data suggests. flows into fixed income funds in the US, emerging market
equity funds in the US and other equity funds (our broad proxy for developed
markets). This data is six weeks out of date but it makes a very obvious point
that while emerging market funds are not seeing record high inflows, nor are
they seeing outflows – that prize rests with fixed income funds, with a
corresponding shift into other equity funds.
This is a long way of saying that 1) the shift into developed equities need not
come at the expense of emerging equities (for us, Asian equities), 2) historically,
absent a bear market, flows don’t tend to be negative in Asia and positive in the
US. Put another way, if the developed markets continue to outperform Asia in
the coming weeks, this does not mean that flows must turn negative. In our
opinion, fears of a wave of substantial redemptions look over played.
India, Indonesia, Korea and Taiwan
The four markets that we’ve been receiving the most questions on in terms of
flows are India and Indonesia, and Korea and Taiwan.
Chart 5 shows the foreign purchases (according to stock exchange data) for all
four markets last year as a percentage of market cap, on a monthly basis. In US
dollar terms, India received 29.7bn, Indonesia 2.4bn, Korea 19.7bn and Taiwan
10.5bn.
As a percentage of market cap (Chart 6), the stock of flows (that is the flow
adjusted by performance) reached just over 10% in India, while Taiwan, lagging
for much of the year, saw sharp inflows in the last quarter of the year. Indonesia,
where flows were strong early in the year, saw foreign outflows toward the end
of the year.
Taking these in a historical context, trailing three month flows as a percentage of
market cap reached very high levels toward Q4 everywhere, but especially more
recently in Taiwan. A similar move over the coming months would seem
unlikely, if history is a guide in Taiwan. More interestingly to us, though the
three month flows (and annual flows) for India reached very high levels last year,
more recently they have tended to zero. With the exception of the global
financial crisis, there have only been very modest and short-lived outflows from
the Indian market. In other words, a full reversal of last year’s flows in India
also looks unlikely to us.
What are the takeaways? Firstly the flows into India, though they have very
modestly started to reverse, were high so this is the market the most vulnerable
to foreign capital flight of the four. The good news in India’s case is that the
more recent flows are very subdued, and historically, absent a major global bear
market, the strong inflows don’t tend to fully reverse. Secondly, after very high
short-term flows, it seems unlikely that Taiwan would see such strong flows
again in the next few months, all things being equal. Finally, Indonesia, which
saw very strong flows early in the year, has given back most of the flow that
entered into the country since September’s moves. This market of the three
looks most interesting to us from a flows perspective (on the positive side).
Strategy summary
While flows are starting to reverse on some measures, we are not seeing
calamitous selling. More importantly, we also find historically that when the US
outperforms Asia in a rising market, there is little evidence of investors selling
Asian funds to ‘get overweight’ developed markets. More often, flows to Asia
just slow down. In other words fears that the recent outperformance of the US
versus Asia will lead to a substantial reversal of flows seem over played.
At the country level, India’s flows, at 10% of market cap in 2010, were the
highest. If there is foreign capital flight, this market looks the most vulnerable.
The good news is that historically, equity portfolio outflows have tended to be
moderate and short-lived affairs in India, with the exception of the global
financial crisis. In other words, strong inflows do not usually reverse. Taiwan’s
flows, very strong in the last quarter of the year, look unlikely in our opinion to
repeat themselves. We see no positive or negative in Korea’s flow data, which
has been steady and unspectacular for most of the last year, i.e. not vulnerable in
our opinion. Finally, the froth in inflows in September/October last year into
Indonesia has entirely reversed. From a flow perspective the Indonesian data
looks most interesting (on the positive side).
Summary of our Strategy View
We remain positive on Asia ex-Japan equities in 2011. Earnings growth
forecasts look achievable and valuations are attractive, especially relative to
other assets. With liquidity now becoming a tailwind, growth less of a concern
and the domestic credit cycle set to improve, we think Asia could re-rate from
its current discount to its historical average PE, and potentially even a premium.
We upgrade our 2011 year-end MSCI Asia ex-Japan index target to 670 from
650, based on 13.7x forward PE, in line with the long-term average.
Our key country picks are Singapore and China. We are neutral the G7 proxy
markets of Taiwan and Korea. Valuations have moved back toward neutral, and
leading indicators have already stabilized. There is less compensation, unless
convinced one way or other of external demand (which we are not) for taking an
aggressive view on these markets now. We are generally underweight the more
expensive ASEAN markets, of which Indonesia with low bond yields, rising
inflation and huge foreign ownership looks the most vulnerable beyond
valuation. At the sector level, we are overweight financials, as the best proxy for
the liquidity theme and the credit cycle. We are underweight defensive sectors,
expecting them to underperform a rising market.
We believe there is an elevated risk that Asian markets could reach what we
would call a ‘euphoric’ state, fuelled by inappropriately loose monetary policy.
On the downside, inflation, sharply higher US bond yields and government
intervention are perceived risks.
Key Calls
What are Key Calls?
Key Calls represent our highest conviction single stock research ideas across the
region. The list is designed to generate bottom-up ‘alpha’ and is not a portfolio
that we use to express our top-down view. The key selection criteria are analyst
conviction, liquidity (>US$10m average daily turnover for most stocks) and a
strategy overlay in terms of the macro outlook, market positioning and risk
management
Table 2: UBS Key Calls
Company Rating Price
(LC)
PT
(LC)
Upside /
Downside
Mkt Cap
(US$ bn)
EPS
Growth
11e
PE 11e P/BV
11E Comments
LG Display
Buy 38200 50000 31% 12.3 16% 10.15 1.12
The potential panel order from Sony in 2011 should
allow LG Display to outperform other LCD stocks. The
company is also a beneficiary of growing tablet PC
demand.
Bangkok Bank
Buy 151.5 200 32% 9.4 14% 10.36 1.17
Prime beneficiary of new credit cycle in Thailand.
Demand for credit from corporations (over 70% of
BBL’s loan book) is likely to be the key driver in the 18
months.
Cheung Kong
Infrastructure
Buy 38.5 45.5 18% 11.1 43% 13.58 1.82
Well-positioned to acquire assets to improve ROE.
Cement business in HK an overlooked generator of
EBITDA.
China National
Building Materials
Buy 18.1 30 66% 6.3 61% 8.54 1.99
Beneficiary of government policy to consolidate supply
and dampen property prices via increasing housing
supply. H-share placement has alleviated concerns
over gearing. EV/ton valuation at historical low.
OCBC
Buy 9.64 11.3 17% 25.3 4% 13.08 1.67
OCBC should benefit more from the strong liquidity in
Singapore via its Wealth Management Business.
Private banking has better growth and profitability and
thus should help command a valuation premium.
Shriram Transport
Finance
Buy 680 950 40% 3.4 31% 10.23 2.64
SHTF Is the only established player in financing for
second-hand commercial vehicles in India .It has
around 20-25% market share in a market which is
expected to grow & and has high barriers to entry.
Lanco Infratech Buy 32.95 105 219% 1.7 105% 8.43 1.74
Strong execution track record in building power plants
underappreciated. We est. new projects could offer
Rp35 upside to the current share price
Sun Hung Kai P.
Buy 124.3 225.9 82% 41.0 21% 16.08 1.22
A sector leader that commands premium pricing
(superior profitability); income stream from commercial
properties holding underappreciated; large landbank
holder and a beneficiary of the credit upcycle in Hong
Kong
Industrial &
Commercial Bank of
China
Buy 5.74 7.7 34% 246.2 11% 11.20 2.15
Strong capital position and provisioning buffer, rising
net interest margin and healthy, albeit sequentially
slower, loan growth.
Source: UBS (prices as of 9th February 2011)
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