It can be difficult sometimes to tell China’s big four banks apart. They’re all state owned, they all enjoy monopolies, and they all serve a government interest. In China Construction Bank’s case, that interest is building. It is a leader in loans for infrastructure projects. Like its state-owned brethren, it is grabbling with rising loan losses. China has some of the world’s highest local government debt levels and corporate debt levels. If and when those can’t be repaid, lenders like China Construction Bank will bear the brunt of the losses, though with state support, they will likely to remain solvent.
News about China Construction Bank
Non-performing loans are growing faster than profits.
In almost all cases, shadow lending is kept off the banks' balance sheets.