In 2012, there were several periods when as many as 10 listed banks saw the prices of their shares fall below book value, indicating an undervaluation by the market. In general, bank shares fell as investors felt that the golden age of China's commercial lenders was coming to an end due to government moves to promote interest rate liberalization, She explained.
Several recently released earnings reports have also supported opinions that banks may not have performed as badly as the market had previously believed, She added.
Shanghai Pudong Development Bank Co announced earlier this month that its net profit grew by an annual rate of 25.20 percent in 2012; while China Everbright Bank Co, Industrial Bank Co and China Minsheng Banking Corp have stated in recent weeks that their net profits from last year were up by more than 30 percent. These statements were based on their unaudited earnings reports.
An earlier report from Bank of Communications estimated that Chinese banks would see their net profits grow by just 17.2 percent in 2012, down from 29 percent growth in 2011.
Beijing fantasy emerges in dense fog
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