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Bank Of China Ltd Class H 03988 Stock Quote

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Morningstar‘s Stock Analysis 03988

Valuation
Currency in HKD
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

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Economic Moat

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Capital Allocation

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Will China's Mortgage Boycotts Spread and Trigger Financial Crisis?

Iris Tan, CFA Senior Equity Analyst

Analyst Note

| Iris Tan, CFA |

We maintain our fair value estimates for the majority of our Chinese bank coverage after the media reported an increasing number of homebuyers across China are refusing to repay mortgage loans for delayed projects. While we expect the imminent impact on banks' credit quality is small, the news reflects challenging liquidity conditions for private developers and weak consumer confidence. We believe this may lead to a weak recovery of the wealth management business—especially for private bank business—as investors are likely to have little mood for financial products linked to the property sector. Hence, we modestly lower fair value estimates for the two retail-oriented banks China Merchants Bank, or CMB, to HKD 68 from HKD 70 per share; and Ping An Bank, or PAB, to CNY 24 from CNY 26 per share, to factor in lower wealth-management-related income growth in 2022.

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Key Statistics 03988

Company Profile 03988

Business Description

Headquartered in Beijing, BOC was founded in 1912. The bank has evolved as a central bank, international exchange bank, and state-owned bank specializing in foreign trade business. BOC was listed on the Hong Kong and Shanghai stock exchanges in 2006. It provides a comprehensive range of financial services to customers across greater China and overseas. Central Huijin, a Chinese state-owned investment company and BOC's largest shareholder, controls 64%.

Contact
1 Fuxingmen Nei Dajie, Xicheng District
Beijing, 100818, China, People's Republic of
T +86 1066596688
Industry Banks - Diversified
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2022
Stock Type
Employees 306,322