People walk past a branch of the Industrial and Commercial Bank of China in Beijing on April 1, 2019. Photo: Reuters

What bargains? China’s cheapest stocks are valuation trap as banks lose margin protection

  • China’s move to set lending rates in reference to borrowing costs on money market will narrow banks’ net interest margins, investors and analysts say
  • Worsening earnings outlook outweighs banks’ valuations, the cheapest among all sectors
Topic |   China economy

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People walk past a branch of the Industrial and Commercial Bank of China in Beijing on April 1, 2019. Photo: Reuters
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Zhang Shidong

Zhang Shidong

Zhang Shidong is based in Shanghai and reports on business for the Post. He joined the team in 2017, following stints covering China's stock market news for Bloomberg and at a local newspaper in Shanghai.