Business Maverick: China banks face $200bn in losses from property, UBS says

Such a loss will be “digestible by the banking system as the banks have strong earnings power and high” reserves against non-performing assets, May Yan, the bank’s head of Greater China financials equity research, said in a report. “As such, we don’t expect any banking system crisis at this point.”

Chinese authorities over the weekend rolled out a sweeping package to help the embattled sector. Regulators issued a 16-point plan to financial firms, with measures that range from addressing a liquidity squeeze at developers to loosening down-payment requirements for homebuyers. The Swiss bank expects a low rate recovery on unsecured loans and bonds, and added that if stalled property projects aren’t completed, banks could suffer further losses from mortgages. They may also sustain losses from off-balance sheet contingent liabilities.

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Business Maverick: German Regulator Sees Need for Global Crypto RulesCrypto assets need to be subject to global rules if they’re adopted by mainstream finance and expose banks and a wider swathe of investors to risk, Germany’s top regulator said.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Chinese Stocks in US Soar, Heading for Best Month on RecordChinese stocks listed in the US are surging for a fourth day on Tuesday, a spectacular change in fortunes just weeks after pessimism toward the group peaked following the Communist Party Congress.
Source: dailymaverick - 🏆 3. / 84 Read more »