Shaun Rein by Fantake via FlickrShaun Rein, managing director of the market research group CMR, might be in general optimistic about China’s economic development, at CNBC he cautions against too many bears on the road for China’s Agricultural Bank, also called AgBank or ABC. The bank performed poorly at its listing on Thursday at the Shanghai stock exchange. The bank is too much a political tool and might not help investors, says Rein.
Most of its customer’base are poor Chinese farmers, who might switch to more consumer-savvy banks like the China Merchant Bank, when they actually start to make money in the decades to come. Also, of its customers currently already 90 percent is not satisfied about the banks performance.
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