China International Capital Co says since August shares of overseas systematically
important banks have fallen about 8% on average while large Chinese banks are up
roughly 9%, with Chinese banks' YTD average return near 32%, outpacing foreign
peers. The firm warns short-term price moves do not confirm a long-term trend
reversal, but differences in fiscal policy, interest-rate and credit cycles and
a market repricing of banks' future profitability and balance-sheet risk make
large Chinese banks are relatively attractive on a risk‑return basis. China
International Capital Co continues to favor large Chinese banks versus overseas
peers.
