Despite concern over bad debts, Chinese banks beat market forecasts

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Despite concern over bad debts, Chinese banks beat market forecasts

China’s banks are now seeking to improve their balance sheets for an anticipated increase in bad loans alongside weaker profit growth. Executives from China's major banks, including the Bank of China (BOC), the Industrial and Commercial Bank of China (ICBC) and the China Construction Bank (CCB) have raised concerns this week over their growing number of bad debts.   "Though our nonperforming loan ratio has been held below 1%, we still face big pressure from rising bad loans," said CCB Chairman Wang Hongzhang earlier this week. And ICBC President Yi Huiman said while ICBC would remain cautious against a potential pickup in bad loans, the bank’s non-performing loans are still well managed.
 Though many analysts believe that the Chinese banking industry has been hit by overcapacity, strained by lending to local governments and State owned enterprises, all of China's major banks reported interim results better than market forecasts.

China, the world’s 2nd largest economy, continues to be the most important market for companies looking for growth and Chinese companies continue to globalize by investing and selling their products in new markets; what is your company’s strategy for engaging China?

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