China's big four banks beat Q1 profit expectations

China’s top four state-owned banks saw first-quarter profits beat expectations despite efforts by the central bank to reduce the lucrative spread between bank depositing and lending rates, Reuters reported. Analysts said Industrial and Commercial Bank of China (1398.HKG, 603198.SHA), Agricultural Bank of China (1288.HKG, 601288.SHA), Bank of China (1988.HKG, 601988.SHA) and China Construction Bank (1939.HKG, 601939.SHA) held interest margins steady by boosting returns from loans amid tight credit conditions. Investors however are still worried over the long-term asset quality of big banks and the impact of financial reform on their interest income.