China's regional banks move quicker to shed bad real estate debt

Net interest margins strained by government pressure to lend more

20240905N China housing

While China is pushing its banks to lend to real estate developers, unfinished apartment buildings can be seen in many cities. © Reuters

KENSAKU IHARA, PEGGY YE and KENJI KAWASE, Nikkei staff writers

HONG KONG -- China's regional banks are moving faster than big institutions in disposing of nonperforming real estate loans, while the government urges them to lend more to support a weak housing market.

Bank of Zhengzhou in Henan province announced on Wednesday that it had agreed to sell assets worth 10 billion yuan ($1.4 billion) to an asset management company mostly funded by the provincial government and state-owned enterprises.

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