Thursday February 25, 2021 25 February 2021

NEWS BITES - BRIC

China Construction Bank Corporation (HK:00939), Hong Kong's largest Bank by market cap, is currently the 10th highest dividend yielding stock in the Hang Seng Index of 52 stocks.

The dividend yield of 5.5% is 4.57 times the triple-A bond yield of 1.21%.

The stock has increased 11.0c (1.8%) from its previous trading session to close at HKD6.35. Compared with the Hang Seng which rose 355.9 points (1.2%) in the day, the relative price increase was 0.6%.

Bearish Turning Points

Relative Strength Index (RSI)

The Relative Strength Index (RSI) of 70.7 has penetrated the overbought line of 70, suggesting the price gain of 8.2% in the last 14 days is unusually high. The RSI was previously 67.0.

Williams % R

The stock is overbought according to the Williams % R indicator of -16.7, suggesting the price is close to its 14-day high. The Williams % R was previously -33.3.

China Construction Bank - H Shares Stock Dashboard (traded in HKD)

CurrencyUSD 1 = HKD 7.75 52-Week Range (In HKD)4.93 - 6.66
Feb 25 closeHKD6.35SectorBank
P/E (FY2018)5.2Market CapHKD1,526.6 billion [$196.9 billion]
Dividend Yield (TTM)5.5%EPS (FY2018)HKD1
EPS Growth (FY2018 vs FY2017)4.2%DPS (TTM)34c
Ave Daily Volume376,004,840 sharesShares Outstanding240,417,319,880

CICHY ADR Dashboard (traded in $)

Home ExchangeChinaRatio1 ADR equals 20 ordinary shares
CodeCICHYTypeUnsponsored
ISINUS1689191088Feb 24 close$16.25
CUSIP168919108EPS Growth (FY2018 vs FY2017)4.2%
*No. Held by Institutions1,198,196Ave Daily Volume171,434 ADRs
Number of shares equivalent23,963,92052-Week Range (In USD)12.65 - 17.05
% of shares outstanding1%

*Total ADRs Held by Institutions 1,198,196; equivalent to 23,963,920 China Construction Bank Corporation shares on issue. This represents 1% of total shares on issue.

INDEX

SECTION 1 RECENT NEWS

SECTION 2 CORPORATE PROFILE

SECTION 3 TOP SHAREHOLDERS

SECTION 4 TODAY'S BULLISH SIGNALS

SECTION 5 ONGOING BULLISH PARAMETERS

SECTION 6 TODAY'S BEARISH SIGNALS

SECTION 7 ONGOING BEARISH PARAMETERS

SECTION 8 NEWS ARCHIVES (MAR 2017 - NOV 2020)

GLOSSARY

DATA & ARCHIVE DOWNLOAD CENTER

00939: EXCEL TABLES ARE AVAILABLE TO EXPORT DATA:

+ PRICE VOLUME - 5-YEAR HISTORY

+ PEER COMPARISON - STOCK IN BANK SECTOR AND STOCK IN INDICES

+ PATENTS - CATEGORISED LIST OF 5-YEAR HISTORY OF 3 [INCLUDING IN CURRENT WEEK]:

00939: LINKS IN HTML TO FURTHER INFORMATION:

+ NEWS ARCHIVES - 00939 PAST 4 YEARS IN HTML:

+ PRICE VOLUME CHARTS IN HTML

+ USD vs HKD EXCHANGE RATE CHARTS IN HTML

SECTION 1 RECENT NEWS

1.1 Changes in Board (TTM)

February 05: China Construction Bank - H Shares appoints President

China Construction Bank - H Shares has appointed Wang Jiang as President. The effective date is Friday, February 05.

January 11: China Construction Bank - H Shares will appoint Non-Executive Director

China Construction Bank - H Shares will appoint Liu Fang as Non-Executive Director. The effective date is Tuesday, January 12.

December 07 2020: China Construction Bank - H Shares appoints Executive Director

China Construction Bank - H Shares has appointed Lyu Jiajin as Executive Director. The effective date is Monday, December 07.

1.2 Dividends

December 17 2020: China Construction Bank - H Shares: Announcement on Distribution of Dividends for Domestic Preference Shares

I. The Meeting of the Board of Directors Approving the Dividend Distribution Plan for Domestic Preference Shares

The Proposal on the Plan of Issuance of Domestic Preference Shares by China Construction Bank Corporation was reviewed and approved at the 2014 annual general meeting, the 2015 first A shareholders class meeting and the 2015 first H shareholders class meeting held by China Construction Bank Corporation (the "Bank") on 15 June 2015, which authorised the board of directors of the Bank (the "Board") to determine and handle the matters about payment of dividends to the holders of the domestic preference shares in accordance with the issuance proposal. The dividend distribution plan for domestic preference shares was considered and approved at the meeting of the Board of the Bank on 28 August 2020. Please refer to the Announcement on the Resolutions of the Meeting of the Board of Directors published on the HKEXnews website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the website of the Bank (www.ccb.com).

Source: HongKong Stock Exchange

1.3 Share Capital

February 15: China Construction Bank - H Shares: Monthly Return of Equity Issuer on Movements in Securities

Monthly Return of Equity Issuer on Movements in Securities

For the month ended (dd/mm/yyyy): 31/01/2021

To: Hong Kong Exchanges and Clearing Limited

Source: HongKong Stock Exchange

1.4 Meetings

February 09: China Construction Bank - H Shares: Proxy Form for the First Extraordinary General Meeting of 2021 to be held on 26 March 2021

I/We(Note 1) of, being the registered holder(s) of H shares(Note 2) of RMB1.00 each in the share capital of China Construction Bank Corporation (the "Bank") HEREBY APPOINT THE CHAIRMAN OF THE MEETING(Note 3) or of as my/our proxy to attend and act for me/us at the first extraordinary general meeting of 2021 (the "Meeting") to be held at 10:00 a.m. on 26 March 2021 at No. 25, Financial Street, Xicheng District, Beijing for the purposes of considering and, if thought fit, passing the resolutions of the Meeting contained in the notice of the Meeting and at the Meeting to vote for me/us in my/our name(s) in respect of the resolutions as indicated below(Note 4).

Source: HongKong Stock Exchange

February 08: China Construction Bank - H Shares: Reply Slip for the First Extraordinary General Meeting of 2021

I/We(Note 1) of, being the registered holder(s) of(Note 2) H shares in the share capital of the Bank hereby inform the Bank that I/we intend to attend the first extraordinary general meeting of 2021 in person or by proxy to be held at 10:00 a.m. on 26 March 2021 at No. 25, Financial Street, Xicheng District, Beijing.

Source: HongKong Stock Exchange

February 08: China Construction Bank - H Shares: Notification Letter and Request Form to Non-registered Shareholders - Notice of Publication of Circular and Notice for the First Extraordinary General Meeting of 2021

The English and Chinese versions of the Current Corporate Communications are available on the Bank's website at www.ccb.com and the HKEXnews website of Hong Kong Exchanges and Clearing Limited at www.hkexnews.hk.

For the purpose of environmental protection and cost saving, we encourage you to take advantage of selecting to review the Current Corporate Communications on the websites. If you would like to receive a printed version of the Current Corporate Communications, please complete the Request Form on the reverse side and send it to the Bank c/o Computershare Hong Kong Investor Services Limited (the "H Share Registrar"). The address of the H Share Registrar is 17M Floor, Hopewell Centre, 183 Queen's Road East, Wan Chai, Hong Kong.

Source: HongKong Stock Exchange

February 08: China Construction Bank - H Shares: Notice of the First Extraordinary General Meeting of 2021

NOTICE IS HEREBY GIVEN that the First EGM of 2021 of China Construction Bank Corporation (the "Bank") will be held at 10:00 a.m. on 26 March 2021 at No. 25, Financial Street, Xicheng District, Beijing to consider and, if thought fit, pass the following resolutions:

Source: HongKong Stock Exchange

February 08: China Construction Bank - H Shares: Circular for the First Extraordinary General Meeting of 2021

INTRODUCTION

The purpose of this circular is to give you notice of the First EGM of 2021 and to provide you with reasonable and necessary information.

At the First EGM of 2021, resolutions will be proposed for consideration and approval, among others, the following as ordinary resolutions: (i) election of Mr. Wang Jiang as executive director of the Bank; (ii) confirming the donations of anti-pandemic materials made in 2020; and (iii) additional limit on poverty alleviation donations.

Source: HongKong Stock Exchange

February 08: China Construction Bank - H Shares: Notification Letter and Change Request Form to Registered Shareholders - Notice of Publication of Circular, Notice, Proxy Form and Reply Slip for the First Extraordinary General Meeting of 2021

The English and Chinese versions of the Current Corporate Communications are available on the Bank's website at www.ccb.com and the HKEXnews website of Hong Kong Exchanges and Clearing Limited at www.hkexnews.hk.

For the purpose of environmental protection and cost saving, we encourage you to take advantage of selecting to review the Current Corporate Communications on the websites. Even if you select to review the Current Corporate Communications on the websites, you will have the right at any time by completing and returning the Change Request Form on the reverse side to the Bank's H share registrar, by post to 17M Floor, Hopewell Centre, 183 Queen's Road East, Wan Chai, Hong Kong, or by email at ccb.ecom@computershare.com.hk to change the choice of means or language of the Current Corporate Communications or to receive the printed copies of the Current Corporate Communications. The Change Request Form may also be downloaded from the Bank's website at www.ccb.com and the HKEXnews website of Hong Kong Exchanges and Clearing Limited at www.hkexnews.hk.

Source: HongKong Stock Exchange

1.5 Press Releases

February 08: China Construction Bank - H Shares announces EGM

China Construction Bank - H Shares has announced its Extra Ordinary General Meeting will take place on Friday, March 26.

January 08: China Construction Bank - H Shares: List of Directors and Their Roles and Functions

The members of the board of directors (the "Board") of China Construction Bank Corporation (the "Bank") are set out below.

Source: HongKong Stock Exchange

December 17 2020: China Construction Bank - H Shares: Notice on Completion of Redemption

Reference is made to the Announcement on the Redemption of the Offshore Preference Shares of China Construction Bank Corporation (the "Bank") published on 29 October 2020 (the "Announcement"). Unless otherwise defined, capitalised terms used in this announcement have the same meanings as those defined in the Announcement.

Pursuant to the terms and conditions of the Offshore Preference Shares and the reply letter from the China Banking and Insurance Regulatory Commission where no objections were raised for the Bank's redeeming the Offshore Preference Shares, the Bank redeemed the aforementioned Offshore Preference Shares in whole on 16 December 2020 (the "Redemption Date") at the redemption price, being the aggregate of an amount equal to the liquidation preference of the Offshore Preference Shares plus any accrued but unpaid dividends in respect of the period from (and including) the immediately preceding dividend payment date to (but excluding) the Redemption Date

Source: HongKong Stock Exchange

December 07 2020: China Construction Bank - H Shares: List of Directors and their Role and Function

The members of the board of directors (the "Board") of China Construction Bank Corporation (the "Bank") are set out below.

Source: HongKong Stock Exchange

1.6 People's News

Fri Feb 05, 2021

China Construction Bank - H Shares has appointed Wang Jiang as President. The appointment takes effect from Feb 05, 2021.

Mon Jan 11, 2021

China Construction Bank - H Shares will appoint Liu Fang as Non-Executive Director. The appointment takes effect from Jan 12, 2021.

Mon Dec 07, 2020

China Construction Bank - H Shares has appointed Lyu Jiajin as Executive Director. The appointment takes effect from Dec 07, 2020.

SECTION 2 CORPORATE PROFILE

2.1 Activities

China Construction Bank is a leading commercial bank in China providing a comprehensive range of commercial banking products and services. Their business consists of three principal business segments: corporate banking, personal banking, and treasury operations.

2.2 Contact Details

Websitehttp://www.ccb.com
Physical AddressNo 25 Finance Street Xicheng District Beijing 100032 China
Phone(852) 2532-9637
Fax(852) 2523-8185
Emailir@ccb.cn

2.3 Industry & Sector

Classification LevelName of Sector
Business SectorBanking & Investment Services
Industry GroupBanking Services
IndustryBanks
ActivityBanks - NEC*
Economic SectorFinancials

* NEC: Not elsewhere classified

SECTION 3 TOP SHAREHOLDERS

Top 7 shareholders

Name of the Share Holder% of Capital
THE HONGKONG AND SHANGHAI BANKING10.5
CHINA SECURITIES DEPOSITORY AND CLEARING10.4
JPMORGAN CHASE BANK, NATIONAL4.0
DBS BANK LTD3.4
CITIBANK N.A.3.0
STANDARD CHARTERED BANK (HONG KONG) LTD1.7
BANK OF CHINA (HONG KONG) LTD1.1

% held by Top 7 shareholders 34.1%

SECTION 4 TODAY'S BULLISH SIGNALS

4.1 Momentum Up 1.3% Past Week

China Construction Bank - H Shares outperformed the Hang Seng index in 3 out of 5 days. The price ranged between a low of HKD6.15 on Feb 19 and a high of HKD6.37 on Feb 23.

FebChina Construction Bank - H SharesClose price [HKD]Price change %Relative change % *Comment
Wed 17Offers 19th lowest Price Earnings in Hang Seng Index, despite price rise6.361.10.01Price/MAP200 above 1 and rising
Thu 18Offers 14th highest dividend yield in Hang Seng Index, after price drop6.23-2.0-0.5Steepest Fall
Fri 19Offers 19th lowest Price Earnings in Hang Seng Index, after price drop6.15-1.3-1.4Week-low of 6.15
Mon 22Offers 12th highest dividend yield in Hang Seng Index, despite price rise6.241.52.5Price/MAP200 above 1 and rising
Tue 23Offers 19th lowest Price Earnings in Hang Seng Index, despite price rise6.372.11.1Week-high of 6.37; Top Rise; VI*=1.2

* Relative change is price change of stock with respect to Benchmark Index, Hang Seng index.

[Volume Index (VI); 1 is average]

4.2 Rank in the top 22% by Relative Valuation in the Hong Kong market

DescriptionValueRank
Price/Earnings5.2In Top 22%

4.3 Rising open interest with rising price

Open Interest Trend

Same day trend: The price increased 1.8% from HKD6.24 to HKD6.35; Open interest has lifted 2.3% from 2,948 to 3,016. A price rise combined with an increase in open interest suggests there is new money coming into the market from existing or new buyers. This is a bullish signal.

DurationOpen Interest change %Price change %Interpretation
1-day2.31.8Strong Market

4.4 Uptrend

Price/Moving Average Price of 1.09 and positive MACD:

- The price to 200-day MAP ratio is 1.09, a bullish indicator. In the past 200 days this ratio has exceeded 1.09, five times suggesting further upside. The stock is trading above both its MAPs and the 50-day MAP of HKD6.0 is higher than the 200-day MAP of HKD5.82, a bullish indicator. The 200-day MAP has increased to HKD5.82. An increase is another bullish indicator.

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 6.22 minus the 26-day EMA of 6.12 is positive, suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.

Past Month:

- Rises to Falls: In the past month the number of rises outnumbered falls 12:7 or 1.7:1.

Past Quarter:

- The shares had their best quarter in five quarters since the quarter ended November 25, 2019.

4.5 Undervaluation

Price/Earnings:

China Construction Bank - H Shares stock is trading at the sixth lowest P/E multiple in the Hang Seng.

Dividend Yield:

China Construction Bank - H Shares stock is the tenth highest dividend yielding stock in the Hang Seng.

Dividend Yield > Bond Yield of 1.21%:

The dividend yield of 5.53% is 4.57 times the triple-A bond yield of 1.21%. The times factor of 4.57 is above the benchmark factor of 0.67 times set by Benjamin Graham.

(All figures in %)

Dividend Yield5.53
Bond Yield1.21
Spread4.32

Dividend Yield of 5.5% > Index avg of 1.8%:

- The relative yield of the stock, defined by its yield of 5.5%, divided by average yield of dividend yielding stocks in the Hang Seng of 1.8% is 302.2%. This suggests the stock is undervalued in dividend yield terms.

4.6 Other Bullish Signals

- Return on Equity of 12.8% versus sector average of 9.7% and market average of 7.3%.

SECTION 5 ONGOING BULLISH PARAMETERS

5.1 Present Value of HKD1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]; The Best Periods with PVHKD1000 > 1,043

PVHKD1,0003 mo ago1 yr ago3 yrs ago
00939.HKHKD1,078HKD1,120HKD1,044
Bank sectorHKD1,111HKD967HKD716
Hang SengHKD1,128HKD1,118HKD962

5.2 Moving Annual Return of 11.6% in the past year:

Moving Annual Return was 11.6% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 21.2%. The Moving Annual Return has been positive in 4 of the last 5 years.

00939Close (HKD)Dividends (HKD)Capital Gain / (Loss) %% YieldAnnual Return %
Feb 256.350.355.85.811.6
1 Yr ago60.35(3.3)5.62.3
2 Yrs ago6.210.34(13.6)4.8(8.9)
3 Yrs ago7.190.3238.56.144.6
4 Yrs ago5.190.3247.39.256.5

Close 5 years ago HKD3.52

5.3 China Construction Bank - H Shares sees dividend rise for a third consecutive year

China Construction Bank - H Shares reported dividends per share of 35.09c in the past year, up 0.5% from the previous year. This is the third consecutive dividend increase. In the past 3 years average annual compound growth rate of dividends was 3.4%.

5.4 EPS growth [FY2018 vs FY2017] of 4.2%:

FYEPSGrowth %
2018CNY1.04.2
201796.0 fen4.3

5.5 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 9.4%

TSR %1 yr5 yrs10 yrs
00939.HK1219.69.5

5.6 Increased Volume, up 27% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has increased 26.9% to 376 million shares.

Avg. Daily Volume Traded 12 months ended Feb 25, million shares

YearADVT
2021376.0
2020342.0
2019314.4
2018319.9
2017296.4

5.7 Increased VWAP, up 34% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 33.8% to HKD5.86. .

Past five years, 12 months ended Feb 25 (HKD)

YearHigh PriceVWAPLow Price
20216.665.864.93
20206.475.95.24
20197.436.315.39
20188.05.924.87
20175.244.383.42

5.8 Increased share turnover, up 57% in 5 years

In the past five years, average daily share turnover has increased 57.4% to HKD1.9 billion ($248.9 million). This suggests increased liquidity.

Past five years, 12 months ended Feb 25 (HKD billion)

YearAverage Daily Turnover
20211.9
20202.0
20191.9
20181.9
20171.2

5.9 Satisfies one criteria of Benjamin Graham

- The P/E of 5.2 multiplied by the P/NTA of 0.7 is 3.4. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

5.10 Satisfies 5 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Positive net income.

- Positive operating cashflow.

- Good quality of earnings [operating cashflow exceeds net income].

- Improvement in current ratio from 26.3 to 28.1.

- Total shares on issue unchanged.

SECTION 6 TODAY'S BEARISH SIGNALS

6.1 Downtrend

Trailing Relative Strength (6 months) at 49 percentile:

- The stock has a 6-month relative strength of 49 in the Hong Kong market of 2,123 stocks which means it has underperformed 51% of the market.

6.2 Overbought/Bearish Signals:

- The Relative Strength Index (RSI) of 70.7 has penetrated the overbought line of 70, suggesting the price gain of 8.2% in the last 14 days is unusually high.

- The stock is overbought according to the Williams % R indicator of -16.7, suggesting the price is close to its 14-day high of HKD6.46.

SECTION 7 ONGOING BEARISH PARAMETERS

7.1 Past 3 years: price fall of 11.7%

3-Year price change of -11.7% for China Construction Bank - H Shares underperformed the change of -3.8% in the Hang Seng index for a relative price change of -7.9%.

Price Change %3 Years
China Construction Bank - H Shares-11.7
Bank sector-28.4
Hang Seng index-3.8

7.2 Annualised Period-based Total Shareholder Returns [TSR %]: The Worst Period with TSR < 1.5%

TSR %3 yrs
00939.HK1.4

SECTION 8 NEWS ARCHIVES (MAR 2017 - NOV 2020)

HTML PAGES ARE AVAILABLE TO EXPORT AS FOLLOWS:

http://www.buysellsignals.net/BuySellSignals/report/Hongkong/Stock/Daily/Html/00939_Corporate_Wire.html

GLOSSARY

ADVT: Average Daily Volume of shares Traded

Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Capital Gain/Loss from n Years Ago to n-1 Years Ago: Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Current Ratio: Current Assets/Current Liabiliites (times)

Dividend Yield: Dividend Per Share/Share Price (%)

Income during the n years (3/2/1): Dividends received during the Period

Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price Close/Moving Avg Price: Latest Price/Moving Average Price

Price/Earnings: Share Price/Earnings Per Share (times)

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)

TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend

TTM: Trailing 12 Months

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

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