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.

To contact the editor responsible for this story: Shiyin Chen at schen37@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.