We expect the first earnings upgrade cycle since 2014 onpotential NIM expansion and improving credit quality in thenext few years.This rebound in NIM would be further evidenceof improved capital allocation and reduced NPL risk,andwould act as a key positive catalyst for China's banks.
20170216-MORGAN_STANLEY-CHINA_FINANCIALS:START_OF_EARNINGS_UPGRADE_CYCLETO_SUPP.pdf
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