Chinese lenders have a massive challenge: They can't lend enough [MSNBC.com]
Goldman Sachs Group, Inc. (The) (GS)
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Source: MSNBC.com
Key PointsSHENZHEN, CHINA - NOVEMBER 16: A boy sits outside a branch of the Bank of China while using a smartphone on November 16, 2024 in Shenzhen, Guangdong Province, China.Cheng Xin | Getty Images News | Getty ImagesChinese commercial banks have a huge problem.With consumers and businesses gloomy about the prospects of the world's second-largest economy, loan growth has stalled. Beijing's stimulus push has so far not been able to spur consumer credit demand, and is yet to spark any meaningful rebound in the faltering economy.So what do banks do with their cash? Buy government bonds.Chinese sovereign bonds have seen a strong rally since December, with 10-year yields plunging to all-time lows this month, dropping by about 34 basis points, according to LSEG data."The lack of strong consumer and business loan demand has led the capital flows into the sovereign bonds market," said Edmund Goh, investment director of fixed income at abrdn in Singapore.That said, "the biggest problem onsho
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