China Construction Bank Posts 4.1% Profit Drop

In 2020, China's state lenders faced significant challenges due to the pandemic. The government enlisted these banks to support the economy, leading to a rise in bad debts. As the economy recovers, regulators are easing pressure, and banks are showing improved but not stellar results. Major banks like China Construction Bank reported profit declines and rising credit losses. Analysts predict potential recovery and healthier returns in the coming quarters, with some expecting a significant rise in bank shares.

What was one of the main reasons for the challenges faced by China's state lenders in 2020?

• Decrease in foreign investments

• High interest rates

• Increase in export tariffs

• Government's request to support the economy

What was the reported fall in third-quarter profit for China Construction Bank?

• 2.5%

• 5.6%

• 3.8%

• 4.1%

By how much did the nonperforming loans rise for China Construction Bank from the end of 2019 through September?

• 20%

• 10%

• 25%

• 15%

Which bank reported a significant rise in problem loans outside mainland China?

• China Construction Bank

• Bank of China

• AG Bank

• ICBC

What is the expected impact on the stock prices of these banks due to easing policies?

• Decrease slightly

• Increase significantly

• Remain stable

• Decrease by 20%