China’s five largest banks reported their biggest profit declines in at least a decade as they brace for further increases in bad loans in an economy weakened by the coronavirus pandemic.
The five lenders — Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China and Bank of Communications — released their latest financial report cards last week.
All five posted at least 10% year-on-year declines in profit for the first half of 2020 as they set aside more funds for potential loan losses in the coming months — much like many banks around the world. Read more…..
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Bill Bishop, author of the Sinocism newsletter and co-founder of CBS MarketWatch, joins “Squawk Box” to discuss what he’s seeing in China as Beijing’s Covid-19 spike seems to be slowing.