(Bloomberg) — 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.
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A Bloomberg Intelligence stock index of Chinese lenders has tumbled 14% from this year’s high in May through Monday’s close, erasing $77 billion of market capitalization and leaving the industry’s shares on the cusp of their lowest-ever valuations.
Already under pressure from China’s monetary loosening and tepid demand, banks are facing renewed scrutiny after authorities asked the sector to extend debt relief to developers as the nation’s housing crisis continues. Some Wall Street analysts also have turned cautious, with Goldman Sachs Group Inc. taking a bearish view on the industry, a move that drew a rare rebuttal from a state-run Chinese newspaper last week.
The Bloomberg Intelligence gauge of Chinese bank stocks is trading at 0.27 times book…
2023-07-10 22:13:23
Original from finance.yahoo.com
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