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Growth supported by lower credit cost

• Resilient net interest margin but fee income disappointed
• Improving asset quality and solid capital position
• The preferred pick among the Big-4 banks

Investment thesis

In choosing where to invest in China’s banking sector, our recommendation is to focus on quality core holdings. We think China Construction Bank (CCB) is
such a choice because its strong balance sheet and, relatively low risk profile makes it more resistant to macro headwinds compared to its peers.