[sgbuffett]

Chinese banks perform poorly as they need to allow customers to remortgage at lower rates.

Estimate income loss is $66B spread over a few yrs.



Looks more like profit taking after recent run up..rather than some kind of crisis. If yoh look at last few months China banks have gone up with other stocks have sink.

Also banks reported a 6% drop in earnings.
Chinese banks have more than 59% discount to book and low dividend payout ratios plus implicit guarantee fro.Chuna givt as China govt js majority share holders. As of today dividend yield is 8%.