THE IPO OF AGRICULTURAL BANK OF CHINA  Polina Pchelnikova  Analysis  and  audio recording judgement  of  the  current  situa2on  Characteristics of ABC: 1.? 2.? 3.? 4.? 5.? 6.? 7.? Third-largest bank by assets in chinaware The most extensive coverage in strong-growing county areas which accounted for almost 50% of the gross domestic product and this percentage is likely to rise. to the full plight urban presence Minimal presence in coarse china Biggest customer base 16.5% market percent in retail deposits and leading retail fees High wampum aesthesia to NIM and belief be Strengths: 1.? 2.? 3.? 4.? 5.? Ideally positioned to capture the faster GDP produce in Chinas county areas Liquidity (2009 50% L/D) drive faster NIM expansion Highest delta in winnings and gainfulness improvement (asset quality management, NIM, volume reaping, efficiency) Preferential state policies (subsidies, jaw deduction and rewards for agricult ure related loans, infrastructure etc.) West, Central areas - requisite demand orientated enterprises =>less risk related to export strike due to a fallout in external surround chore issues for ABC: 1.? 2.? 3.? 4.? 5.
? higher(prenominal) quote entry risks in certain loans Weaker operative efficiency in county areas Asset quality metrics discard behind peers LGFV loans Preferential state policies arent granted on perpetual basis Shareholders: ¨?? ¨?? ¨?? 39.21% MOF 40.03% Huijin 3.89% SSF (April 2010 private placement: RMB 15.5 bln for 10 bln shares) County China is non the same as rura l: ¨?? ¨?? ¨?? Not providing micro lo! ans to farmers just supporting fast growing agriculture development, SMEs and tertiary industries higher(prenominal) cost base, lower L/D ratios, lower profitability But profitability is likely to rise due to fatser harvest-festival of lending in county areas and bigger reduction in credit costs Possible alternatives  Overview: ¨?? ¨?? Progressive reduction in credit costs may significantly boost its profitability unique positioning...If you wishing to get a full essay, order it on our website: OrderCustomPaper.com
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