Goldman Analysts’ Bearish China Bank View Draws Fresh Rebuke

  • Merchants Bank says report misleading, lacking common sense
  • Analysts face growing scrutiny in China on their research

Shares of Merchants Bank have lost 12% in Hong Kong since Goldman cut its target price.

Photographer: Brent Lewin/Bloomberg

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A bearish research report on Chinese banks by Goldman Sachs Group Inc. has drawn fresh criticism from a major lender and one of the nation’s largest macro hedge funds after receiving a backlash from state media.

Goldman’s assumptions have “misled some investors and caused them to worry about the asset quality,” China Merchants Bank Co. said in a clarification statement to investors that was seen by Bloomberg News.