The Investment Value Analysis Of China Merchants Bank

The reform in commercial banks is the key part of Chinese financial reform and thengoing public in capital market is a crucial step for commercial banks to improvecorporate governance and push capital adequacy ratio that can enhance commercialbanks' capability of resisting risks. China Merchant Bank (CMB) is regarded, as thebest commercial bank in China mainland, also the model of Chinese listingcommercial banks. This paper intends to reflect the basic operation conditions ofChinese listing commercial banks by analyzing CMB's investment value from theperspective of institutional investors.As to the investment valuation analysis of CMB, the paper focuses on analyzing andforecasting trends of corporate governance, capital adequacy, assets quality andprofitability. Then the paper implements the analysis of CMB's equity target price bycombining the ROE/COE model and CAMEL model in terms of the above analysisand prediction. The result can help investors gauge the investment value of CMB.