Chinese banks’ profits may take a hit as policymakers urge lenders to lower the refinancing costs on $5.4 trillion of home loans, adding further pressure on the sector to help revive the nation’s flagging economy.
People’s Bank of China official Zou Lan said during a briefing on Friday that the central bank has encouraged lenders to renegotiate mortgage contracts or extend new loans, a move seen as negative for banks’ margin and earnings by brokerages including JPMorgan Chase & Co. and China International Capital Corp.
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