Since we are told that China is not capitalist because private ownership of the top banks is a "hallmark of capitalism," here is news about the top four banks in China. The state owns almost all their shares. They are entangled in the real estate sector and its bust just like private banks. And people take their net interest margin as a matter of importance.
The real estate sector itself is also a combination of state and private firms. The distinction between state firm and private firm, all immersed in a capitalist commodity economy, says nothing about whether a country is on the socialist path. _______________ Top Chinese banks warn of spillover risks from property crisis Echo Wong, Nikkei Asia, March 29, 2024 Hong Kong -- China's top four banks collectively reported an increase in total bad loans in 2023, as credit pressure rises in areas closely tied to the troubled property sector. The "Big Four" state-owned banks, Industrial and Commercial Bank of China (ICBC), Bank of China (BOC), China Construction Bank (CCB), and Agricultural Bank of China (ABC) reported this week that their total nonperforming loans reached 1.23 trillion yuan ($170 billion) in 2023, up 10.4% from 1.117 trillion yuan in 2022. Bad loans to property developers rose to 183.9 billion yuan in 2023, from 180.1 billion yuan in 2022, with CCB and ABC reporting increases of 43.31% and 1.25%, respectively. ICBC and BOC reported a decline of 8.03% and 13.93%. Bad construction loans -- such as money lent to building material or property services companies -- jumped across the four lenders by 38.38% to 33.5 billion yuan in 2023 from a year prior, with ICBC, BOC, CCB and ABC reporting an increase of 87.38%, 51.34%, 22.06% and 16.2%, respectively. Bank of Communications (BOCOM), a Shanghai-headquartered state-owned bank, saw bad real estate loans jump 67.6% in 2023 to 24.4 billion yuan. "There are three 'grey rhinos' [in the economy], property developers, local government debt, small-to-medium financial institutions' cross-lending," Liu Jun, president at BOCOM, said Wednesday. ["Grey rhino" is financial jargon for a looming risk whose resolution is being delayed at the risk of a big crisis.--C.A.] All banks reported declines in net interest margin, a key measure of profitability that is based on the difference between interest paid and interest received, adjusted for the total amount of interest-generating assets held by a bank. Excerpted from https://asia.nikkei.com/Business/Markets/China-debt-crunch/Top-Chinese-banks-warn-of-spillover-risks-from-property-crisis -=-=-=-=-=-=-=-=-=-=-=- Groups.io Links: You receive all messages sent to this group. View/Reply Online (#29727): https://groups.io/g/marxmail/message/29727 Mute This Topic: https://groups.io/mt/105203438/21656 -=-=- POSTING RULES & NOTES #1 YOU MUST clip all extraneous text when replying to a message. #2 This mail-list, like most, is publicly & permanently archived. #3 Subscribe and post under an alias if #2 is a concern. #4 Do not exceed five posts a day. -=-=- Group Owner: [email protected] Unsubscribe: https://groups.io/g/marxmail/leave/8674936/21656/1316126222/xyzzy [[email protected]] -=-=-=-=-=-=-=-=-=-=-=-
