China Construction Bank (0939.HKG, 601939.SHA) on Sunday reported the weakest pace of profit growth in five quarters for the May-June period, Bloomberg reported, citing a company filing. Net income in Q2 rose 9.7% from a year earlier to US$9.92 billion (RMB 60.1 billion). The earnings reflect how Chinese banks are grappling with rising defaults and weak lending demand. “Chinese banks’ asset quality shows no sign of stabilization as the economy remains sluggish,” said Mu Hua, a Guangzhou-based analyst at GF Securities.
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