China Minsheng Banking (HKSE:01988) Beneish M-Score: -2.37 (As of Aug. 21, 2026)

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HKSE:01988 China Minsheng Banking Corp Ltd HKSE:01988
67 GF Score
Price HK$3.50
GF Value HK$4.30
Valuation Modestly Undervalued
! 4 Warning Signs
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What is China Minsheng Banking Beneish M-Score?

China Minsheng Banking HKSE:01988 +1.16% 67 Beneish M-Score is -2.37 as of Aug. 21, 2026. GuruFocus rates HKSE:01988 with a GF Score™ of 67/100 and a GF Value™ of HK$4.30 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,393 Banks companies, China Minsheng Banking ranks worse than 55.64% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.37 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for China Minsheng Banking's Beneish M-Score or its related term are showing as below:

HKSE:01988' s Beneish M-Score Range Over the Past 10 Years
Min: -11.3   Med: -2.36   Max: 21.41
Current: -2.37

During the past 13 years, the highest Beneish M-Score of China Minsheng Banking was 21.41. The lowest was -11.30. And the median was -2.36.

HKSE:01988
67GF Score
China Minsheng Banking Corp Ltd HKSE:01988
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

China Minsheng Banking Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of China Minsheng Banking for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1+0.528 * 1+0.404 * 1.0006+0.892 * 1.0629+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8716+4.679 * 0.008883-0.327 * 0.9302
=-2.34

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was HK$0 Mil.
Revenue was 42951.383 + 37953.936 + 39478.106 + 38881.198 = HK$159,265 Mil.
Gross Profit was 42951.383 + 37953.936 + 39478.106 + 38881.198 = HK$159,265 Mil.
Total Current Assets was HK$0 Mil.
Total Assets was HK$8,912,221 Mil.
Property, Plant and Equipment(Net PPE) was HK$70,480 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$13,741 Mil.
Total Current Liabilities was HK$0 Mil.
Long-Term Debt & Capital Lease Obligation was HK$1,116,668 Mil.
Net Income was 13075.518 + 2232.649 + 7826.774 + 9441.843 = HK$32,577 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = HK$0 Mil.
Cash Flow from Operations was -405.416 + -224845.809 + 289704.275 + -111041.666 = HK$-46,589 Mil.
 Total Receivables was HK$0 Mil.
Revenue was 39471.409 + 36973.484 + 38022.414 + 35368.76 = HK$149,836 Mil.
Gross Profit was 39471.409 + 36973.484 + 38022.414 + 35368.76 = HK$149,836 Mil.
Total Current Assets was HK$0 Mil.
Total Assets was HK$8,345,491 Mil.
Property, Plant and Equipment(Net PPE) was HK$70,735 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$14,832 Mil.
Total Current Liabilities was HK$0 Mil.
Long-Term Debt & Capital Lease Obligation was HK$1,124,124 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(0 / 159264.623) / (0 / 149836.067)
=0 / 0
=1

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(149836.067 / 149836.067) / (159264.623 / 159264.623)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 70479.925) / 8912221.274) / (1 - (0 + 70735.021) / 8345490.872)
=0.992092 / 0.991524
=1.0006

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=159264.623 / 149836.067
=1.0629

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(0 / (0 + 70735.021)) / (0 / (0 + 70479.925))
=0 / 0
=1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(13740.873 / 159264.623) / (14832.136 / 149836.067)
=0.086277 / 0.098989
=0.8716

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1116667.832 + 0) / 8912221.274) / ((1124124.031 + 0) / 8345490.872)
=0.125296 / 0.134698
=0.9302

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(32576.784 - 0 - -46588.616) / 8912221.274
=0.008883

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

China Minsheng Banking has a M-score of -2.34 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.37 mean?
China Minsheng Banking (HKSE:01988) has a Beneish M-Score of -2.37 as of Aug. 21, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on China Minsheng Banking and its competitors. According to the industry distribution chart, China Minsheng Banking ranks #775 out of 1393 companies in the Banks industry, placing it in the top 55.6%.
Is China Minsheng Banking's Beneish M-Score too high?
China Minsheng Banking's current Beneish M-Score is -2.37. Based on the distribution chart, China Minsheng Banking ranks #775 out of 1393 companies in the Banks industry, which is below the industry midpoint. Overall, China Minsheng Banking has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Minsheng Banking's Beneish M-Score compare to competitors?
According to the Banks industry distribution chart, China Minsheng Banking ranks #775 out of 1393 companies for Beneish M-Score. This places China Minsheng Banking in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Banks company?
A good Beneish M-Score depends on the Banks industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on China Minsheng Banking and its competitors. China Minsheng Banking's current Beneish M-Score is -2.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Minsheng Banking stock overvalued right now?
Based on GuruFocus' analysis, China Minsheng Banking (HKSE:01988) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$4.30, compared to a current price of HK$3.50 — trading 18.6% below its estimated fair value. The current Beneish M-Score is -2.37. China Minsheng Banking's overall GF Score™ is 67/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For China Minsheng Banking (HKSE:01988), the current Beneish M-Score is -2.37 as of Aug. 21, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is China Minsheng Banking (HKSE:01988) Overvalued in 2026?

Based on GuruFocus' analysis, China Minsheng Banking stock appears to be undervalued. The current stock price of HK$3.50 is trading 18.6% below its estimated GF Value™ of HK$4.30. GuruFocus considers China Minsheng Banking to be Modestly Undervalued.

Key valuation signals for HKSE:01988:

  • Beneish M-Score: -2.37
  • GF Value™: HK$4.30 vs. price of HK$3.50 (18.6% below fair value)
  • GF Score™: 67/100 with 4 warning signs

No single metric tells the full story. See the HKSE:01988 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

China Minsheng Banking Business Description

Address No. 2, Fuxingmennei Avenue, Xicheng District, Beijing, CHN, 100031
China Minsheng Banking Corp Ltd is a joined stock commercial banks in China. The activities of the bank include commercial banking, financial leasing, fund management, global investment banking, wealth management, and other activities. The segments of the bank are categorized as corporate banking and retail banking, out of which the bank derives maximum revenue from corporate banking segment.
67GF Score

Get the complete analysis for HKSE:01988

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$3.50
Price
HK$4.30
GF Value