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Market Impact: 0.4

China Banks Snap Up Bonds to Seek Returns as Loan Slump Deepens

Source: Bloomberg

Banking & LiquidityCredit & Bond MarketsInterest Rates & YieldsConsumer Demand & RetailHousing & Real EstateEconomic Data

Chinese banks are increasingly purchasing government bonds to support returns as weak mortgage and consumer-loan demand limits profitable lending opportunities. The shift highlights subdued household borrowing and property-market weakness, while potentially increasing banks' exposure to government debt and affecting bond-market demand.

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