德银-xx-银行业-xx银行业：大与小——差异基本原理与贸易理念-20171114-.pdfVIP

Deutsche Bank Markets Research Asia Corporate Credit Date China Financials 14 November 2017 Viacheslav Shilin, MBA Research Analyst Asia Credit (+65 ) 6423 5726 viacheslav.shilin@ Chinese banks: big vs. small - divergent Yuvaraj Bhole fundamentals trade ideas Research Associate yuvaraj.bhole@ In this report, we analyse the main trends displayed by Chinese banks in their fundamental performance YTD and vs. FY16 and FY15 time periods and highlight the differences in underlying risk profiles between larger entities and their smaller-sized peers. It is unsurprising, in our view, that our findings indicate that the first signs of economic stabilisation in China for now are evident only on the balance sheets and PLs of the larger entities in the country, while the smaller ones continue to be challenged by higher competition for liquidity (incl. customer deposits), the need to underwrite higher-risk assets (incl. “shadow banking” products) to sustain earnings and growth momentums, and face ever increasing pressure on capital base. Across the cr