SHANGHAI/SINGAPORE, July 7 (Reuters) – Chinese banks are facing increasing risks from rising non-performing loans (NPLs) and diminishing returns, making them a lightning rod for investors’ worries about the world’s second-largest economy.
Concerns about their exposure to local government financing vehicles (LGFVs), the investment firms that fund mainly infrastructure projects for local governments, and the crisis-hit property sector have pummelled their shares this week, dragging them to their steepest drops in about eight years.
Authorities appeared anxious to nip the selloff after Goldman Sachs’ (GS.N) downgrade of some major lenders to
China’s banks bear brunt of concerns around growth and debt
