Citi, UBS, Daiwa have all come to the defense of Chinese banks after Goldman was critical

<p>Bloomberg (gated) have the report on Citigroup, UBS and Daiwa arguing that Chinese lenders will withstand the strains of bad local government debt and less fee income without cutting dividends. </p><p>Making the point that Beijing needs payouts from state-owned banks to fund spending, and balance sheets are robust.</p><p>The three responded in a rebuttal to Goldman analysts who have cut ratings and target prices.</p><p>Daiwa, for example:</p><ul><li>“The Ministry of Finance has the incentive to keep dividend payout ratios stable,” </li><li>it’s the controlling shareholder for most state-owned banks, cash dividends are “key source of revenue” for the government</li></ul><p><a href="https://www.bloomberg.com/news/articles/2023-07-19/china-banks-uncertain-future-pits-goldman-against-citi-ubs" target="_blank" rel="nofollow">Here is the link to the Bloomberg piec</a>e for more, but may be gated.</p>

This article was written by Eamonn Sheridan at www.forexlive.com.