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China’s Mega Banks Are in Mega Trouble—And So Is the Chinese Economy

From the author: "As everyone in Beijing leadership circles knows, the failure to move to a consumption-based economy risks a debt crisis and a debt crisis risks the banks."

The five largest Chinese banks posted at least 10 percent profit declines for the first half of the year.

  • Gordon G. Chang
  • The National Interest

These poor results, the result of increased provisions for bad loans, were the biggest profit drops in at least a decade.

As a CNBC headline put it, “China’s Mega Banks Lost Billions of Dollars in Profit as Bad Loans Rise During Coronavirus Pandemic.”

The profit drops are a…

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