China Construction Bank has released its Q4 earnings report.The bank posted a net income gain of 4.8 billion dollars.Profit for the quarter was up by 25%,missing estimates.
Those were considerable earnings,but,all the same,there continues to be deep-seated concern at the country's biggest mortgage lender.China Construction Bank has the most exposure to local government lending,real estate lending and consumer debt.Any problems in those areas could well crimp future earnings at this prominent institution.
Credit quality indeed declined there,with non-performing loans increasing from 1.02% in the previous quarter to 1.09% in Q4.The financial titan cited a more severe global economic environment and domestic economic restructuring as challenges it faces in 2012.
China Construction Bank is represented in a number of exchange traded funds with a Chinese or emerging market orientation,so its performance does affect the well-being of foreign investors.
On Monday morning,Asian markets opened higher,with the MSCI Asia Pacific Index up by 0.15%.
iShares Trust FTSE/Xinhua China 25 index(FXI)
1 comment:
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