Specter of property-driven cash crunch looms over Chinese banks

Cooling land market risks leaving authorities with less income to fund rescues

20211017N china Shengjing Bank

A man walks past a branch of Shengjing Bank in Liaoning Province: Chinese banks' exposure to struggling developers like Evergrande has become a growing threat. © Reuters

NORIYUKI DOI, Nikkei staff writer

SHANGHAI -- Chinese banks' massive lending to the real estate sector looks increasingly likely to backfire on many as default fears mount -- and may ultimately make it harder for authorities to bail them out.

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