Banks in China Are in `Sweet Spot' After Rate Increase, Credit Suisse Says

Chinese banks are “in a sweet spot” as the unexpected increase in the nation’s benchmark lending rate will boost margins, Credit Suisse analysts including Sanjay Jain wrote in a report.

Property stocks are likely to “underperform” as the interest-rate increase may lead to a decline in investment- and speculation-driven demand for housing, the brokerage said in a separate report by analysts including Jinsong Du.

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