Like Silicon Valley Bank, Japan's big lenders have been investing a lot of their depositors' money in securities, many of which are now losing value as interest rates climb. (Source photos by AP/Reuters)

SVB collapse hits Japanese banks harder than Chinese ones

Investors punish Asian lenders with big portfolios of interest rate-sensitive bonds

ECHO WONG and KENJI KAWASE, Nikkei staff writers

March 20, 2023 06:00 JST

Updated on March 20, 2023 06:49 JST

HONG KONG -- Recent turbulence in global markets has been hitting banks in Japan harder than those in China as investors punish lenders that have focused more on buying bonds than on making loans.

Japan's three leading lenders lost more than $20 billion in market value last week, while China's big four state-owned banks gained more than $30 billion in Hong Kong and Shanghai trading.