Chinese banks
The A-share team
If no one else can help
Oct 15th 2011 | HONG KONG | from the print edition
FOR nine bloody weeks, China’s four biggest banks—which are also among the world’s largest—took a beating on the stockmarkets, especially in Hong Kong, where their “H” shares can be bought (lightly) and sold (heavily) by foreigners. From August 1st to October 7th, the Industrial & Commercial Bank of China, China Construction Bank, Bank of China and Agricultural Bank of China together lost over $109 billion in market value (counting both their “H” shares and their “A” shares listed on the mainland).
They did not suffer alone. Other listed Chinese companies also fell, as investors fretted about China’s credit markets, both formal and informal, which are tightening; its property market (slowing); loans to its local governments (souring); and its overseas markets in America and Europe (contracting, perhaps).
But only days after the Chinese returned from Golden Week, a national holiday, the banks were reinvigorated. By the end of October 12th they had recovered over $36 billion of market value. A day earlier, Central Huijin Investment, a government agency that owns controlling stakes in the big four banks, said it would buy more “A” shares in all of them.
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