Asian bank valuations vary throughout region

The financials sector in Asia remains out of favour due to low levels of borrowing and the rising interest rate environment. Britannic Asset Management is negative on the financials sector, as previously oversold stocks bounced back by around 15% in local currency terms in under 10 days. Financials account for 13% of the Britannic Pacific Growth portfolio, versus a 20% benchmark. Diamond Lee, Far East fund manager at Britannic, says the main reason for this is that demand for credit in Asia has not yet significantly recovered following the crisis of 1997. He says: "There is still over-c...