FINANCE

China’s Huaxia Bank Faces Scrutiny Over Property-Linked Loans

Published: May. 26, 2026 1:07 p.m. GMT+8

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A regulatory probe into the Shenzhen branch of Huaxia Bank Co. Ltd. (600015.SH) is raising fresh questions about hidden property-related risks in China’s banking system.

Multiple loans issued by the branch to non-property companies tied to developers were found to have violated credit standards or improperly expanded credit exposure, Caixin has learned from sources with knowledge of the matter.

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Regulatory probe into Huaxia Bank Shenzhen branch over loans exceeding 2 billion yuan violating credit standards.
Loans issued to small firms linked to developers with few social insurance enrollees; some turned nonperforming.
Branch remains loss-making with rising nonperforming loan ratio, raising concerns over hidden bad debt in China's banking system.

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Who’s Who

Huaxia Bank Co., Ltd.: Huaxia Bank Co., Ltd. (600015.SH) is facing a regulatory probe into its Shenzhen branch over loans exceeding 2 billion yuan tied to developers. The loans violated credit standards, with insufficient scrutiny of borrowers’ employee records allowing risky exposure. Its Greater Bay Area operations, including Shenzhen, remained loss-making with rising nonperforming loan ratios.

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