05.10.2026, 22:43
Russia's partner has started to close banks en masse
Source: OREANDA-NEWS
OREANDA-NEWS The authorities of the People's Republic of China have closed about a quarter of banks amid slowing economic growth. This was reported by CNBC.
The channel referred to a study by Fitch Ratings, which showed that as a result of Beijing's consolidation and liquidation policy, a record 670 credit institutions were closed in the country in 2025. The weakest link turned out to be small and rural commercial banks. They are distinguished by questionable asset quality, low capitalization, and management deficiencies.
In this regard, it is noted that China's GDP grew by 4.3 percent in the second quarter, which was the slowest growth rate since 2022, and the profit of industrial enterprises in August reached 4.2 percent year-on-year. This is the weakest indicator this year.
In August, the growth of industrial production in China accelerated due to an increase in export-oriented production of semiconductors and equipment. Industrial production increased by 5.2 percent year-on-year over the last month of summer, accelerating from 4.5 percent.
At the same time, there is evidence that Chinese residents are gripped by pessimistic sentiments. The collapse of the real estate market has devalued the assets of many families. It has become more difficult to find a job, and it has become less stable. Online, Chinese people are increasingly complaining about meager salaries, lack of jobs, falling property prices and fear of the future. In July, the official youth unemployment rate in China reached 17.9 percent.
The channel referred to a study by Fitch Ratings, which showed that as a result of Beijing's consolidation and liquidation policy, a record 670 credit institutions were closed in the country in 2025. The weakest link turned out to be small and rural commercial banks. They are distinguished by questionable asset quality, low capitalization, and management deficiencies.
In this regard, it is noted that China's GDP grew by 4.3 percent in the second quarter, which was the slowest growth rate since 2022, and the profit of industrial enterprises in August reached 4.2 percent year-on-year. This is the weakest indicator this year.
In August, the growth of industrial production in China accelerated due to an increase in export-oriented production of semiconductors and equipment. Industrial production increased by 5.2 percent year-on-year over the last month of summer, accelerating from 4.5 percent.
At the same time, there is evidence that Chinese residents are gripped by pessimistic sentiments. The collapse of the real estate market has devalued the assets of many families. It has become more difficult to find a job, and it has become less stable. Online, Chinese people are increasingly complaining about meager salaries, lack of jobs, falling property prices and fear of the future. In July, the official youth unemployment rate in China reached 17.9 percent.
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