ICBC, Jiangxi Copper Among Citi’s Top China Picks After RRR Cut
February 20, 2012, 1:59 AM ESTBy Bloomberg News
Feb. 20 (Bloomberg) -- Industrial & Commercial Bank of China Ltd. and China Construction Bank Corp. are among Citigroup Inc.’s “Top Buys” among Chinese banks after the central bank cut lenders’ reserve-requirement ratios, while Jianxi Copper Co. was recommended among miners.
“We believe RRR cuts are positive for banking shares mainly because monetary easing is a key catalyst for a valuation re-rating in our view,” Citigroup analysts said in a report. “We expect earnings at the bigger banks to be more resilient and hence our preference for the big banks.”
Jiangxi Copper, the nation’s biggest copper producer, is a “quality beta play to policy easing,” they wrote.
To contact the editor responsible for this story: Allen Wan at awan3@bloomberg.net
