Posted 11/28/2023, 12:30:00 AM
Chinese Banks Face Losses and Cuts As Property Crisis Mounts
- Chinese banks face mounting losses and job cuts as they are pushed to backstop struggling property firms
- Banks may need to set aside an extra $89B for bad property debt, equal to 21% of 2024 pre-provision profits
- Lenders are weighing growth target cuts and job reductions due to profit pressures
- Banks have been caught between demands to support property sector and run a sound business
- Regional banks most at risk; could face $301B capital hit from municipal debt crisis