China’s use of stronger language in its latest pledge for banks to cut mortgage rates may lead to more pressure on margins, according to Citigroup Inc. analysts.
The nation’s central bank seems to have adopted “harsher-than-expected” wording that could be interpreted as requiring large and commercial banks to reduce existing home lending rates, Citigroup analysts led by Judy Zhang wrote in a report Tuesday. It may spark concerns over their burden of performing a “national service” and lower margins, they wrote.
Read More : Citi Analysts Express Concern at Banks Over China’s Mortgage Rate Push