Chinese bank shares have fallen this year partly due to concerns about non performing loans, but while this will inevitably cause problems for lenders, analysts believe a major recapitalization of the sector won’t be necessary. Since the start of 2016, shares in Bank of China have fallen by 9.25%, those in Agricultural Bank of China by 9.46% and ICBC by 8.55%. “I think the banks’ share prices reflect concerns about asset quality,” Louis Tse, director at VC Brokerage, told the South China Morning Post. Tse said that although there had been a rally in the last week, it was “mostly to do with investors wanting to get the dividends” that the banks will offer.
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