Posted 10/19/2023, 10:59:09 AM
S&P: China's Regional Banks Face $301B Capital Shortfall Amid Local Government Debt Risks
- China's regional banks could face $301B capital shortfall from local government debt crisis, per S&P
- Banks have high exposure to local government financing vehicles (LGFVs)
- Concerns over LGFV default risks amid property downturn, falling land sales
- Banks in lower-tier cities with concentrated exposure most at risk of "pain"
- Central government may step in to contain systemic risks, but select credit events still possible
