Shift in govt policy outweighs concern over the slowing economy, with Beijing focusing on ways to boost growthAfter snapping up Ping An Bank Co, traders have turned their attention to its larger rival China Merchants Bank Co.MOST of the world's best-performing bank stocks are now in China, a nation that's barely started to recover from last year's liquidity crunch.
Chinese bank stocks are making a comeback after surging bond defaults, souring loans and a home-grown liquidity crunch made them untouchable for most of 2018. A shift in government policy has outweighed concern over the slowing economy, with Beijing focusing on ways to boost growth rather than reduce financial risk.
"Although the bank's large base of high-quality clients now brings high investment income revenue, this may change with the trends," said Raymond Chen, portfolio manager at Keywise Capital Management Beijing Ltd.