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Capital moves factored in, says fund
(皇冠体育app Daily/Agencies)
Updated: 2009-11-27 08:02
Potential capital-raising plans have been factored into current valuations of major Chinese bank shares, said a portfolio manager with Neuberger Berman on Wednesday.
The independent fund manager said it had cut its exposure to Chinese banking stocks in August, when talk of likely increases in bank capital ratios began to circulate.
"This not really new, the discussions have been going on since summer. We undertook a major portfolio repositioning back then," said Frank Yao, managing director with Neuberger Berman.
Yao said major banks like 皇冠体育app's top lender ICBC and 皇冠体育app Construction Bank might not need to issue any additional shares.
The valuation of the MSCI 皇冠体育app Index, with a price to earnings ratio at 13 times estimated 2010 earnings, lagged its historical average mainly because of undervalued shares of commercial banks and telecommunications companies, said Yao.
