China’s protracted property downturn is eroding the balance sheets of the nation’s largest state banks as their bad loans creep up.
<-bsp-bb-link state="{"bbHref":"bbg://securities/3328%20HK%20Equity","_id":"0000018e-84ca-dd73-a18e-c7cfca870000","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">Bank of Communications Co.-bsp-bb-link> reported Wednesday that its property bad loan ratio jumped to 4.99% at the end of last year from 2.8% a year earlier. While the balance of its overdue mortgages slipped, the special mention loans for the segment — a leading indicator of soured loans — jumped 23% to 9.88 billion yuan ($1.4 billion).
Bigger rival <-bsp-bb-link state="{"bbHref":"bbg://securities/601398%20CH%20Equity","_id":"0000018e-84ca-dd73-a18e-c7cfca880000","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">Industrial & Commercial Bank of China Ltd.-bsp-bb-link> saw its bad loans from residential mortgages rise 9.6% to 27.8 billion yuan, ...
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