China's top banks report rising bad loans as property woes spread

Nonperforming loans jumped 7.6% in first half at four big state-owned lenders

Nonperforming loans at the four big state-owned Chinese banks reached 1.202 trillion yuan ($164.8 billion) in the first six months of 2023. (Nikkei montage/Source photo by AP and Reuters)

ECHO WONG, Nikkei staff writer

August 31, 2023 18:11 JST

HONG KONG -- China's top lenders have reported an increase in bad loans during the first half of the year amid predictions that credit problems in the property sector will grow worse.

The state-owned Industrial and Commercial Bank of China (ICBC), Bank of China (BOC), China Construction Bank (CCB) and Agricultural Bank of China (ABC) said in recent days that their total nonperforming loans (NPLs) reached 1.202 trillion yuan ($164.8 billion) in the first six months of 2023, up 7.6% from 1.117 trillion yuan at the end of last year.