China’s $77 Billion Bank Rout Shows Who Pays Price for Rescues

  • Banks under more pressure as property relief measures extended
  • Bloomberg Intelligence gauge for sector down 14% from May high
WATCH: Chinese banks are facing renewed scrutiny after authorities asked the sector to extend debt relief to developers. Lianting Tu reports.Source: Bloomberg
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Investors in Chinese bank stocks are getting a painful reminder of who’s likely to bear the brunt of government efforts to shore up the embattled real estate sector and revive economic growth.

A Bloomberg Intelligence stock index of Chinese lenders has tumbled 14% from this year’s high in May, erasing $77 billion of market capitalization and leaving the industry’s shares on the cusp of their lowest-ever valuations.