China's state banks report more bad loans to hotels, restaurants and stores

Consumer spending slump hits top lenders as falling interest rates dent profitability

20240830N ICBC

Chinese banks' profit margins are under pressure from weak appetite for loans and falling interest rates. © Reuters

WATARU SUZUKI, Nikkei staff writer

HONG KONG -- Bad loans in consumer-facing industries have crept upward at China's biggest state-owned banks while a key gauge of profitability has fallen, posing a fresh challenge in managing loan quality amid slowing economic growth.

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