China Bank Earnings Will Slow Down in 2H, Says UBS’s Yan

The video discusses the impact of net interest margins on bank profits, highlighting a slowdown in earnings and a gradual decline in return on equity (ROE) for Chinese banks. It examines the effects of interest rate reforms, particularly the loan prime rate (LPR), on margin compression. The video also addresses asset quality, noting minimal deterioration, and liquidity conditions following the Baosheng bank event, with central bank interventions stabilizing the situation.

What signs of asset quality deterioration have been observed in banks recently?

What measures have been taken by the central bank to address liquidity conditions for smaller banks?