Table of contents

Lowering our sector stance to Neutral on reduced 2009 visibility, macro/NIM/NPLs headwinds 4
Rating and target price changes 8
Asset quality: Incorporating more conservative NPL formation rates; three key risks to watch for 12
Detailed NPL and corporate profitability analysis 15
Summary financials 28
Industrial and Commercial Bank of China (H) 28
Bank of China (H) 29
China Construction Bank (H) 30
Bank of Communications (H) 31
China Merchants Bank (H) 32
China CITIC Bank (H) 33
Shanghai Pudong Development Bank 34
Industrial Bank 35
China Minsheng Banking 36
Shenzhen Development Bank 37
Hua Xia Bank 38
Bank of Ningbo 39
Bank of Beijing 40
Bank of Nanjing 41
Disclosures 42