2023-07-11 05:53:47
Investors investing in bank stocks: Who will bear the brunt of the Chinese government’s efforts to help the struggling property sector and revive the economy? is once again reminded.
A Bloomberg Intelligence (BI) index of Chinese banks is down 14% from a year-to-date high in May. It has lost $77 billion worth of market capitalization, and its valuation has sunk to near all-time lows.
The banking sector is already under pressure from the People’s Bank of China (PBOC), which has eased monetary policy and slowing demand for funds. are gathering again.
China expands support measures for real estate market, including one-year extension of loan repayments
Some Wall Street analysts have turned cautious. Goldman Sachs Group Inc. issued a bearish view on China’s banking stocks, in an unusual move last week when a Chinese newspaper refuted it.
The price-to-book ratio (PBR) of China’s bank stock index is just above the all-time low set in late October last year at 0.27. On the other hand, the global bank index increased 0.9 times.
Citigroup analysts Griffin Chan and Judy Chan wrote in a note that the extension of the financial support package for real estate developers “fundamentally addresses investor concerns over bank credit risks to troubled developers. I have a strong impression that it will improve the general sentiment rather than soften it,” he analyzed. Banks with greater mortgage exposure may be more vulnerable, he said.
Original title:China’s $77 Billion Bank Rout Shows Who Pays Price for Rescues(excerpt)
(Part of this article uses automatic translation)
1689062072
#Chinas #real #estate #market #support #burden #banksmarket #capitalization #loss #trillion #yen #Bloomberg