Deutsche Bank beats sensible retreat from China

Hong Kong

DEUTSCHE Bank is joining peers cashing out of China. The German lender is selling a US$3.8 billion, 19.9 per cent holding in Huaxia Bank to local insurer PICC Property and Casualty. Like rivals such as Goldman Sachs and Bank of America Merrill Lynch before it, Deutsche is crystallising a solid return - while admitting that minority stakes on the mainland are of little use.

Given China's troubles, this is a less-than-ideal time to sell. The Shenzhen-listed retail bank's shares trade at just 6.5 times forward earnings, or 0.9 times book value, both roughly one-third below their 10-year average, StarMine data shows.