Resilience and realignment: Opportunities and risks in China’s banking sector
- 06 September 2024 (10 min read)
China's economy has been grappling with significant challenges in recent years – primarily an unprecedented property downturn set against the backdrop of a broader economic slowdown. Additionally, the issue of local government debt, continues to exert pressure on the economy. Banks, often seen as the barometer of an economy, are experiencing tremendous strain from these challenges. Following our recent research analysing property market developments, in this note we analyse the banking sector’s overall health by examining its asset growth, asset quality and exposure to troubled economic sectors — specifically, the property market and local government debt. We will also explore China’s banks’ potential future.
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