According to a report released by BoCom International, on January 10, the CBRC held a 2017 national banking supervision and management conference to review the work in 2016. In 2016, the net profit of banking financial institutions for the whole year reached 2 trillion yuan, an increase of 4 percent over the same period last year, and the growth rate is expected to be slightly faster than that in 2015. As the overall profit growth rate of unlisted institutions in banking financial institutions is faster than that of listed banks, the profit growth rate of listed banks is expected to be slower than that of banking financial institutions in 2016. By the end of December, the asset balance was 226.3 trillion yuan, up 15.8 percent from the same period last year; the non-performing loan ratio of commercial banks was 1.81 percent, the same as the data announced at the working meeting in the first half of the year; and the provision coverage rate was 175.5 percent, up 14 percentage points from the first half of the year.

2017 risk prevention is still the focus, to return to the origin and focus on the main business as the guide to further promote banking reform and opening up. We will increase policy support for the financial services of small and micro enterprises. The meeting proposed that efforts should be made to improve the financial services of small and micro enterprises, establish and improve various information platforms, vigorously develop government-supported financing guarantee and re-guarantee institutions, and continue to guide and support commercial banks to set up inclusive financial departments. support banks with mature conditions to carry out the reform of credit subsidiaries of small and micro enterprises.

BoCom International said that the industry currently has a 17-year PE and PB of 5.53 and 0.72 times, maintaining the leading banking rating, China CITIC Bank Corporation (00998-HK), China Huarong (02799-HK) buy rating, and Construction Bank of China (00939-HK), Bank of China (03988-HK) long-term buy rating.