![](https://i.imgur.com/CLvY2jA.png")
29-06-2022, 10:16 AM
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.
![[Image: wMzExBO.jpg]](https://i.imgur.com/wMzExBO.jpg)
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.
I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
