[sgbuffett]

I took some time to analyse the China banking sector to understand the system

There is strong effects from the lending to real estate sectors that will have long term negative effects. We cannot trivialise this just look at Japan the real estate market burst and many banks failed or became zombies. Look at the US housing crisis the banks went to the very of collapse.

Because of these fears, Chinese banks have become cheap....and cheap for a good reason. One can get 7-8% yield on banking stocks but it can be a value trap so you cannot anyhow buy.

end of the day banking is a much needed service for the consumers and economy so it will exists even as the economy slows or face problems

As there are numerous listed Chinese banks and their activities are inherently complex and difficult to fathom. I decided to look at the other side. Fore example I looked at how Conservative the bank is and whether it had previously been assisted by govt for its bad debts. Because many articles are in Chinese and my Chinese is rusty I had to spend hours reading translated articles.

After studying the banks one by one. My pick is the Postal Savings Bank.  I purchased the stock a week ago.

[webinarian]

I took some tome to analyse the China banking sector to understand the system

There is strong effects from the lending to real estate sectors that will have long term negative effects. We cannot trivialise this just look at Japan the real estate market burst and many banks failed or became zombies. Look at the US housing crisis the banks went to the very of collapse.

Because of these fears, Chinese banks have become cheap....and cheap for a good reason. One can get 7-8% yield on banking stocks but it can be a value trap so you cannot anyhow buy.

end of the day banking is a much needed service for the consumers and economy so it will exists even as the economy slows or face problems

As there are numerous listed Chinese banks and their activities are inherently complex and difficult to fathom. I decided to look at the other side. Fore example I looked at how Conservative the bank is and whether it had previously been assisted by govt for its bad debts. Because many articles are in Chinese and my Chinese is rusty I had to spend hours reading translated articles.

After studying the banks one by one. My pick is the Postal Savings Bank.  I purchased the stock a week ago.

Good move.   

For me, I just keep some HST ETF.  

.

[Fleetdestroyer]

Be careful hor moronic kokee say China bank bankrupt LOL LOL

[sgbuffett]

Be careful hor moronic kokee say China bank bankrupt LOL LOL

Many banks that over lend to property sector will be in trouble.

A crisis depend on how the govt handle it.

During US housing crisis George Bush was asked for 40B to bail out Lehman and stop the contagion. Hr said no bail out and system went into free fall.

China  govt on the other knows the banks are always getting into trouble and even has a state agency called Huar9ng to buy bad debts from banks.  They never fix the banking system but get rid of the bad debts resulting from the banking system. This is not a good approach as the banking industry is riddled with corruption and depends on govt bail out.Huarong itself had a big corruption case and CEO sentenced to death. Just imagine how rotten the system is.

If leaders are smart they slowly cut back on bailout and clean up these banks one by one without the collapse we see in other countries.

What is left will be the good banks and good banks that grow and take up the market left behind by the lousy banks


If you ask me China's banking system is as bad as it gets. But govt has tremendous power and control not to let it crash.

[kokee]

dont just bark, put down here your counter, buying time, lot, price.
same when you sell them.
dont argue or BS from nothing later.

[Niubee]

dont just bark, put down here your counter, buying time, lot, price.
same when you sell them.
dont argue or BS from nothing later.

Show us your shorts China la

[Sharexchange]

China banks 50% fake money.