The Value Of Chinese Listed Banks Based On Casual Theory

With the revolution of Chinese Banks, foreign banks merging into the market, financial functions becoming more diversified, oversea development, Chinese banks industrial ROE is higher than other industries, but the market interest rates doesn't match the ROE. This problem is still a riddle.Based on causal theory, this study is using macro market industrial and micro analysis, with samples of 14 listed banks, and FHAP method to solve the problem.Using the causal frame to analyze banking industry, the study found that, as a risk and credit management industry, Chinese bankings are protected by government, the capital market development, and economy development will decide the future value.With the FHAP method, the study found that the whole Chinese banking industry is in a good condition and the difference between banks is small. Among them, CMB got the highest score. In the aspect of profitability, liquidity, safety, markets and future development, CMB, Shanghai Pudong Development Bank, Bank of Communications and Industrial bank perform better than other banks. Medium and small joint-stock banks operating income growth and net interest margin are relatively high, such as Bank of Ningbo and Bank of Beijing.The case study of CMB and Industrial Bank showed that interest income has a large proportion, which resulted in highly dependent on macroeconomic policies. Banking industrial monopoly, homogeneous competition and relations with government matter in valuation. As for the non-interest income, individual joint-stock banks have begun to implement Blue Ocean Strategy, but because of me-too products and entry barriers, the convergence of intensifying is more and more obvious.At the end of this article, the study calculates the value of the CMB and Industrial Banks, and raised some the future research suggestions.