By Fei Ya (China Daily)
Updated: 2007-11-09 14:16

The Industrial and Commercial Bank of China (ICBC) was billed as the most valuable stock on the A-share market of the top 20 for 2008 published yesterday.

The list, published by Global Business magazine under Tom.com after a survey of seven foreign and local senior analysts, selected 20 stocks worthy of investment next year, 11 of them financial companies.

China Merchants Bank and China Vanke Co Ltd were No 2 and No 3, followed by Ping An Insurance (Group) Co of China and Bank of China, according to the list.

Shares in the ICBC, the country's largest lender, could rise to 15 yuan by the end of 2008, according to the analysts surveyed.

"The bank, with the biggest financial assets, the widest network and the largest clients in China, will benefit the most from the continual growth of the country's economy," said Liu Kan, deputy director of Equity Research at Hualin Securities.

Liu said he believes financial shares will be the most worthy of investment in 2008, thanks to the rising mainland capital market, new accounting rules and the nation's industry upgrade.

"All these will contribute to the development of a strong financial market. For example, many listed companies will step up their process to pay back loans after they've raised enough money from the capital market. This will directly reduce banks' non-performing loan ratios," Liu said.

He added that the rapid growth of mortgages and the credit card business, as well as the booming mutual funds market will also contribute to banks' rising profits.

The top 20 best stocks are all industry leaders. Chinese white liquor maker Wuliangye Yibin Co Ltd ranks No 6 on the list, with analysts predicting it will benefit from greater consumption on the mainland.

Two travel stocks, Huangshan Tourism Development Co Ltd and Lijiang Yulong Tourism Co Ltd, are also among the top 20.