China Minsheng Banking Corp Ltd Class A
600016: XSHG (CHN)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| CNY 7.10 | Fqcl | Skcss |
CMBC Reported Better-Than-Peer Net Profit Growth on Improved Credit Quality
Business Strategy and Outlook
China Minsheng Banking Corp.'s credit risk has showed gradual improvement after years of restructuring. The bank was once a leader in China’s micro- and small-enterprise, or MSE, financing market. The fragility of small private enterprises translated to a painful business restructuring for CMBC over the past few years. CMBC's multiyear restructuring and derisking translated to declines in the nonperforming loan ratio and lower bad debt formation rate.