Stock Commercial Bank in China ---- Interpret the
Safety & Profitability
Index Page
1. Brief
1.1 SMART objective of the project
In this project, I will spend three months to investigating China Merchants Bank (CMB) financial situation, and interpret the financial statement of China Merchants Bank from 2004 to 2008 to evaluate the safety and profitability of CMB.
Usual analysis tool conclude ratio analysis, primary data analysis and trend analysis. This report will use ratio and trend of primary data to judge the safety and profitability for CMB, and use trend analysis to measure historical performance and to forecast development in the future to enable those shareholders of the company to make their own decisions related to the company chosen more wisely. At last part of this report, I will present correct recommendation to shareholders to help them make better decision.
1.2 Statement of Issue
Generally, this issue is through analysis financial data to evaluate safety and profitability of CMB in financial crisis to help shareholders make wiser decision.
Specifically, to investigate the above issue more scientifically, this report mainly uses ratio analysis, primary data analysis and trend analysis will as tool to interpret the financial data information from financial statement. Also through external comparison with the financial averages of banking industry to corresponding figures of CMB. Relative market position of CMB will be discovered and analyzed. And internally, through the analysis historical trend about financial interrelation ratio, it will be evaluating historical performance and forecast development and performance in the further to help shareholders making decision.
1.3 Reasons why I choose this issue and corresponding subject covered
The reason why I choose this issue:
Banking industry is relatively concerned in capital market of China. Especially, in