Sanjay Jain called his real estate broker four days ago to cancel a deal to buy a three-bedroom home in Folsom, California, unnerved by another plunge in the most volatile equities market on record.
Bank of Communications Co., the Chinese lender part-owned by HSBC Holdings Plc, reported a higher-than-estimated 13 percent increase in second-quarter profit as fee income surged.
Loan losses at Chinese banks may climb to levels equivalent to 60 percent of their equity capital as real-estate companies and local governments fail to repay debts, according to Credit Suisse Group AG.
Shares of the following companies had unusual price changes in China trading. Stock symbols are in parentheses and prices are as of the 3 p.m. close.
Chinese banks are “in a sweet spot” as the unexpected increase in the nation’s benchmark lending rate will boost margins, Credit Suisse analysts including Sanjay Jain wrote in a report.
Credit Suisse Group AG said they favor Chinese banks the most among Asian financial stocks while Indian banks look “expensive.”
China’s decision to raise interest rates for the first time since 2007 will boost earnings at banks as their margins on lending widen, according to Morgan Stanley and Deutsche Bank AG analysts.
Asian stocks fell for the first time in three days on concern the yen near a 15-year high against the dollar will crimp export earnings of Japanese companies.
"Loan growth kept momentum but deposit acquisition suffered."
- Sanjay Jain on Oct 27, 2013