Jul 07, 2023 04:34 AM

FINANCE

Goldman Slashes Stock Ratings of Big Chinese Banks

By Ding Feng and Denise Jia

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Goldman Sachs estimates that 12 large publicly traded Chinese banks hold a total of 34 trillion yuan ($4.69 trillion) of local government debt.

Goldman Sachs estimates that 12 large publicly traded Chinese banks hold a total of 34 trillion yuan ($4.69 trillion) of local government debt.

Goldman Sachs downgraded shares of several top Chinese lenders, citing the risk of losses and saying their exposure to local government debt threatens to weaken earnings growth and put capital accumulation and dividends under pressure.

The Wall Street bank analyzed 12 publicly traded Chinese banks in a report published Wednesday. Goldman put sell ratings on Agricultural Bank of China, Industrial and Commercial Bank of China (ICBC), Industrial Bank, Bank of Communications and Huaxia Bank. Four of them are big state-owned banks.

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