Värdering av banker i Kina och EU : - Är Kinas banker övervärderade jämfört med EU?
Abstract (Summary)The Peoples Republic of China have become one of the world’s financial centers, when both big and small investors see potential in a country with high economical growth and the investments can give big profits. We have valuated the eight largest banks in China and compared them to the eight largest banks in EU. This has been studied because the banks stand for almost 50 percent of the value of the Hong Kong Stock Exchange (HKEx). This study has been chosen because it is an interesting subject and a topic that is We have from our calculations of beta, CAPM and the valuations of the banks come to the conclusion that the banks we looked in to in China are a bit overvaluated. The Stock Exchanges in China have had extremely high growth the last years, which we think will calm down. Either gradually or really fast as when a bubble explodes. One difficult issue with valuation of banks is that it is hard to find out whether their loans are reliable or not, and that gives the banks a higher risk then the reality shows. Therefore we conclude that the risk to invest in bank shares in China is higher than to invest the money in bank shares in EU, and with great possibility a financial bubble is on its way to explode in China. This can lead to a lot of investors trying to collect their profits and leave a turbulent market behind them.
Source Type:Master's Thesis
Date of Publication:01/25/2008