If one observes the valuation metrics of China largest state banks, they are bordering on very cheap valuations- dividend yields of 7.5% to 8.5%, PB ratio <0.5, PE ratio <5. If they were to be revalued to that of Singapore banks, one is looking at a 100% upside to current prices.  So why are China Banks Cheap? Two reasons, one as I have previously alluded here, people are skeptical of the Chinese Bank's financial reports and that they are fake (frauds). After months of observations, I don't see much evidence that their results are fake. In fact, it follows quite closely to the PBOC reported growth and loan levels, so if the China State Banks are indeed fraudulent, it means the country and the Chinese Communist Party are faking the results of an entire industry. This I find it is too far fetched for such a government to be generating...