China's property crisis hits small regional banks harder than big players

Northeastern institutions suffer sharp increases in bad loans to developers

20240408 A construction site of residential buildings

A residential construction site in Dalian, Liaoning province. The pressure on banks in China's northeast is acute as the country grapples with a prolonged real estate slump. (China Daily via Reuters)

ECHO WONG, Nikkei staff writer

HONG KONG -- China's property crisis is taking a particularly heavy toll on small banks in low-growth provinces, as bad debts to developers erode their finances.

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