The share price of China’s leading commercial bank, China Merchants Bank (CMB) slumped 4.08 percent on Wednesday following a further 3.21-percent on Thursday in the A-shares market.
The plunge was due to a piece of news from the Hong Kong market alleging that China’s watchdog persuaded some of China’s banks to moderately control their growth rate, and the CMB therefore decided to set a zero-growth rate for its revenue for 2019.
The CMB denied such news by saying that it had not received any such requests from the authorities; and it had neither started their budgeting plans yet for the next year.
It pledged to compile next year’s budget in a positive but feasible way. On one hand, it would keep strengthening its leading wealth management services for retail customers. On the other hand, it would expand its businesses in investment banking and other services.
The bank displayed confidence in its outlook for next year by saying its asset structure is relatively safe and the loans for its retail customers accounts for over 52 percent while its corporate loans are led mainly by strategic customers who bear low risks for defaults.
Its third-quarter earnings report shows that the CMB achieved a 13.2-percent year-on-year increase in revenue to end at 188.22 billion yuan (27.27 billion U.S. dollars) for the first three quarters. Accordingly, the net profits reached 67.38 billion yuan (9.76 billion U.S. dollars), up 14.6 percent year on year.
The plunge was due to a piece of news from the Hong Kong market alleging that China’s watchdog persuaded some of China’s banks to moderately control their growth rate, and the CMB therefore decided to set a zero-growth rate for its revenue for 2019.
The CMB denied such news by saying that it had not received any such requests from the authorities; and it had neither started their budgeting plans yet for the next year.
It pledged to compile next year’s budget in a positive but feasible way. On one hand, it would keep strengthening its leading wealth management services for retail customers. On the other hand, it would expand its businesses in investment banking and other services.
The bank displayed confidence in its outlook for next year by saying its asset structure is relatively safe and the loans for its retail customers accounts for over 52 percent while its corporate loans are led mainly by strategic customers who bear low risks for defaults.
Its third-quarter earnings report shows that the CMB achieved a 13.2-percent year-on-year increase in revenue to end at 188.22 billion yuan (27.27 billion U.S. dollars) for the first three quarters. Accordingly, the net profits reached 67.38 billion yuan (9.76 billion U.S. dollars), up 14.6 percent year on year.
Latest comments