Bocom's Hong Sees Chinese Bank Earnings Improving

The transcript discusses the improving earnings of Chinese banks in late 2016 and potential growth in 2017, despite concerns about high debt levels. It highlights the impact of the reflation trade and interest rate changes on the banking sector. A contrasting pessimistic view is presented, emphasizing China's unsustainable debt. The discussion also covers loan loss provisions and the role of the PBOC in maintaining stability amid liquidity challenges.

What are the implications of the rising debt levels for loan loss provisions in 2017?

What trends were observed in the profitability of larger banks in the last quarter of 2016?

How does the Chinese government's approach to stabilizing the banking system affect smaller lenders?