Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
S&P: CN Banking Sector's Capital Adequate; Real Estate Loan Losses Expected to be Manageable
Recommend 11 Positive 24 Negative 6 |
||||
|
||||
|
S&P Global Ratings released a report today (22nd) titled “China Banks Can Manage Downside From A New Round Of Real Estate Risks”. It stated that the real estate risks in China's banking sector are not as severe as recent events suggest. Investors are focused on the liquidity issues of CHINA VANKE (02202.HK) (rated SD, or selective default) and the potential contagion if more defaults occur. S&P Global Ratings credit analyst Ming Tan noted that the capital adequacy of China's banking sector is strong, and real estate loan losses are manageable. Besides, data from the structured financial market showed that China's mortgage performance is normal, with no spike in non-performing loans (NPLs). The rating agency indicated that in its base case, banks' property-sector strains are easing, albeit from a high level, because most risk loans have been recognized before they become bad debts. China's economic performance has exceeded S&P's expectations, and the NPL ratio of banks has improved. AASTOCKS Financial News Website: www.aastocks.com |
||||
Copied to Clipboard
 |
||||
