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The understated NPL of China bank, is more likely due to different norm applied by China banking sector, vs the rest of the world. It is less likely on trustworthiness, IMO.
The "normalized" NPL ratio, is a biggest puzzle for China bank investment. I have read many articles on the matter. Most "Western" articles "estimated" as about 10%. I am more inclined to believe the "normalized" NPL ratio should be around 5% (in 2014), which is also the figure estimated by recent PwC HK. (I have lost the link).
One supplementary support, are the Special Mention/NPL published in AR, which is likely very close to the "normalized" NPL ratio, IMO.
Will the 5% NPL ratio, wipe out the equity base? I am more optimistic on the matter. Of course, the China banks have more challenges ahead, which include the impact(s) from financial liberalization in China, and higher regulatory cost.
(not vested in China banks, but monitoring)
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ICBC launches robo-adviser service for wealth-management products
The nation’s largest bank by assets is first of China’s ‘big four’ lenders to offer automated advice and product service
Maggie Zhang
PUBLISHED : Tuesday, 14 November, 2017, 8:30am
UPDATED : Tuesday, 14 November, 2017, 8:30am
Industrial and Commercial Bank of China (ICBC) has applied the latest artificial intelligence-led technology to its wealth-management operations, reflecting just how the country’s big banks are now fighting hard to gain an edge over rivals in the sector.
Its newly launched “robo-adviser” service will see computer programmes dish out investment advice to retail investors over its mobile banking platform, becoming the first among the nation’s “big-four” state-owned lenders to unlock the potential of the hot new service being adopted rapidly by the industry, worldwide.
The value of China’s total robo-adviser services, including those offered by banks, assets managers and fintech companies, is expected to top 5.22 trillion yuan (US$783 billion) by 2020, according to data from consultancy Analysys.
More details in
http://www.scmp.com/business/companies/a...t-products
Specuvestor: Asset - Business - Structure.