China Banking Sector (Part 2): Very Attractive? Cheap Valuation?

( Please refer to Table 1 )
The prices of banking counters from China has been dropping since the peak of Oct 2010 and almost touching March 2009 level. Based on 6-10-2011 prices, most of the banking counters are trading at 5x-7x PER.( cheap valuation when compared to Malaysia banking counters and some other Asia banking counters).

Maybe is time for us to positioning our investment portfolio  in China Banking sector for time horizon of 2 years. Start to accumulate China banks from this level and expecting a investment return of more than 20% p.a
if you hold for time horizon of 2 years.

Assumption is made based on prices rebounded back to 10x PER (reasonable level). During good time,China banking counters tend to trading at the range of 13x-16x PER.