STORY CONTINUES BELOW THESE SALTWIRE VIDEOSBy Ziyi Tang and Ryan Woo
The results will come against the backdrop of record-low credit growth in July, default risks at some housing developers and missed payments by a private wealth manager linked to shadow banking that has raised contagion risk to the broader economy. "While there is support from greater exposure to government-related assets, it is more uncertain than ever on whether this can fully buffer the weak demand in households and corporates."
The situation has worried authorities, with the central bank warning that banks needed to maintain a proper level of profit and NIM to ensure sustainability in supporting the real economy.The half-yearly results of the top five banks and management commentary should help provide a glimpse into the near-term earnings outlook for the sector, as well as prospects for the world's second-largest economy.
Shares of China's biggest five banks have been sliding since early May amid concerns over the weakening economy.