Bilibala: giant bank is better than small/mid bank even in China, a country where huge banks have much more social responsibity & political concern than the commerical banks. Sometimes, conservative can be a good character, a little lower return with much lesser risk.
http://www.reuters.com/article/idUSTOE62703Q20100308
Govt targets 19 pct loan growth for banking sector (Adds details, background)BEIJING, March 8 (Reuters) - China Construction Bank (0939.HK), China's No.2 bank by assets, said its new lending will grow by a modest 10 percent or more this year, as banks slow new loans growth following a lending binge in 2010 under Beijing's economic stimulus programme.
CCB Chairman Guo Shuping gave Reuters the forecast on the sidelines of the National People's Congress in Beijing on Monday, adding that the bank expected its provision ratio for non-performing loans to remain above 170 percent this year.
Chinese banks posted a record 9.6 trillion yuan ($1.406 trillion) in new loans last year, fuelling concern they were sowing the seeds for a new crop of bad debts down the road.
The government has targeted 7.5 trillion yuan in new lending this year, down from last year but a figure that would still lift the industry's overall outstanding loan volume by 19 percent from the end of 2009.
CCB (601939.SS) and China's other biggest lenders including ICBC (1398.HK)(601398.SS) were relatively conservative in their lending last year compared with mid-sized and smaller banks, which sharply turned up lending in response to Beijing's 4 trillion yuan stimulus plan aimed at boosting consumption.
As a result, many of those smaller banks are believed to need new capital to boost their adequacy ratios.
China CITIC Bank (0998.HK)(601998.SS) is actively exploring raising capital [ID:nBJC002509], and China Merchants Bank (3968.HK)(600036.SS) is launching a $3.2 billion rights issue, but this week said it should require no further capital raising for at least the next three years. [ID:nBJB003703]
Bank of Communications (BoCom) (3328.HK) (601328.SS), China's fifth-largest lender, said last month that it planned to raise as much as 42 billion yuan via a rights issue in Shanghai and Hong Kong to bolster capital.
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