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China Banks See Margins Squeezed by Efforts to Spur Economy

  • Biggest firms have increased riskier loans to small companies
  • First-half profits at some lenders missed analyst estimates
China Citic Bank and China Construction Bank Ahead Of Earnings
Photographer: Qilai Shen/Bloomberg
Bloomberg News
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China’s biggest banks responded to government demands to help spur a slowing economy. The cost of their efforts has been disappointing profits and shrinking loan margins.