Home market Goldman Sachs Downgrades Chinese Banks, Sending Stocks Tumbling

Goldman Sachs Downgrades Chinese Banks, Sending Stocks Tumbling

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Goldman Sachs Downgrades Chinese Banks, Sending Stocks Tumbling

Goldman Sachs recently downgraded several major Chinese banks, including Agricultural Bank of China, Industrial and Commercial Bank of China, and Industrial Bank, causing a significant drop in Chinese banking stocks. The downgrade was based on the assessment that Chinese banks are unable to maintain a favorable balance of provisions, capital, and dividends while facing squeezed earnings. In response, the National Administration of Financial Regulation has communicated with these banks, urging appropriate actions. Chinese state-backed Securities Times criticized the downgrade as being rooted in pessimistic assumptions.