Investing
Chinese banks face potential 10% earnings drop by 2024 due to rising bad debt ratios
© Reuters.
Chinese banks, particularly those with significant exposure to the property sector, may face a 10% drop in earnings by 2024 if bad debt ratios increase due to defaults from “low quality” state-owned developers and private builders. This prediction was made on Wednesday by analysts from JPMorgan Chase & Co. (NYSE:), including Katherine Lei.
The looming threat of increased loan defaults could potentially push the loan ratio up to 13%. This trend is mirrored in the CSI 300 Banks Index. Banks such as Ping An Bank Co. and China Minsheng Banking Corp., which have substantial exposure to the property sector, are grappling with liquidity issues and slow debt restructuring progress amid government pressure.
On the other hand, some banks appear less affected by these developments. These include China Merchants Bank Co., Industrial & Commercial Bank of China (OTC:) Ltd., and China Construction Bank (OTC:) Corp. Although these institutions are also part of the Chinese banking sector, their current situation suggests they may be more resilient to the predicted rise in bad debt ratios.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Read the full article here
-
Personal Finance4 days ago
Social Security cost-of-living adjustment will be 2.5% in 2025, less than prior year
-
Investing6 days ago
U.K. stocks lower at close of trade; Investing.com United Kingdom 100 down 1.37% By Investing.com
-
Investing6 days ago
AI Pioneers Win $1.06 Million, 2024 Nobel Prize in Physics
-
Make Money6 days ago
The Top Employers and Opportunities for Part-Time Remote Jobs
-
Passive Income6 days ago
How to Build a Workplace Culture Centered on Love, Abundance and Purpose
-
Investing5 days ago
JPMorgan Chase CEO Jamie Dimon: AI Will Take Over Some Jobs
-
Side Hustles4 days ago
Oldest Children Like Bezos, Musk Have 2 Leadership Qualities
-
Passive Income4 days ago
4 Marketing Triggers to Set Up Now to Supercharge Your New Year