Citigroup: Initiates 30-day positive catalyst watch on Construction Bank, target price 9.88 Hong Kong dollars.

According to a research report from Citigroup, a positive catalyst observation on China Construction Bank for a period of 30 days is expected to result in better-than-expected first quarter performance. The bank stated that due to a 7.5% annual growth in loans, a 6 basis point expansion in net interest margin to 1.35% quarterly, strong fee income growth, and stable asset quality, it is predicted that its first quarter revenue and profits will increase by 9% and 3.5% respectively. The bank maintains its "buy" rating and reaffirms a target price of 9.88 Hong Kong dollars.