德意志银行-xx银行业-20170731-deutschebank-chinesebanks：corporateprofitabilitymaintainedmomentum；buybigbanks.pdfVIP

Deutsche Bank Markets Research Asia Industry Date China Chinese banks 31 July 2017 Banking / Finance Banks Industry Update Hans Fan, CFA Corporate profitability maintained Research Analyst (+852 ) 2203 6353 momentum; buy big banks hans.fan@ Industrial corporate and SOE profit growth stayed strong in June Stephen Andrews, CFA To assess Chinese banks asset quality risks, we track closely the profit growth Research Analyst of Chinas industrial enterprises (22% of system credit) and SOEs (31% of (+852 ) - 2203 6191 credit). NBS reported that profits of industrial enterprises grew by 22% yoy in stephen-a.andrews@ 1H17 (5M17: 22.7%); all SOEs recorded profit growth of 24.3% in 1H17. Specifically, industrial SOEs, perceived as the most troubled sectors (11% of Jacky Zuo Edward Du system credit), maintained rapid profit growth (Figure 23). The improving Research Analyst Research Associate corporate profitability should relieve asset quality risks for banks and also be (+852 ) 2203 6255 (+852 ) 2203 6185 supportive to NIM. We stay posit