Bought ICBC - Industrial and Commercial Bank of China (1398.HK) on Monday, 1 Feb 2011- specifically to ride on the overseas expansion plans. I have blogged an article on ICBC.
To my opinion, I believe there is more room to grow, given the fact that Chinese companies are setting up offices worldwide. ICBC is able to offer familiarity and value-added banking services to the local Chinese firms or state-owned enterprises. On the consumer banking segment, we do see a trend for rich Chinese consumers buying up international luxury goods and high-end properties. There is demand which ICBC will be happy to fill in. Hopefully in the long term, ICBC could grow to be a well-received and valuable brand, not only catering to the Chinese but all nationalities round the world. It is not easy, given the sticky in-country banking regulations, the Chinese government intervention and policies, the trust and confidence, corporate governance and structure etc.
Risks assumed, I have made a decision to invest into ICBC growth story. Due to short term volatility, if Mr. Market provides cheaper valuation, I will be delighted to add on more ICBC shares. Buy in batches - will be my strategy to accumulate my investment stakes in ICBC. And monitor their overseas development.
It will be great if ICBC could turn out to be the next HSBC!
For now, this marks the end of my new share purchases. Recently acquired GRP and MIT (MapleTree Industrial Trust) for my dividend portfolio.
Lastly, I will like to take this opportunity to wish all my readers a:
- HAPPY AND PROSPEROUS LUNAR NEW YEAR! -