ICBC Steps up to Stabilize Property Market

The Industrial and Commercial Bank of China (ICBC) announced its support for efforts to stabilize the property market in the world's second-largest economy during a press conference held on Thursday (Mar 28). Wang Jingwu, a vice president at ICBC, made these comments a day after the publication of the bank's annual results. While Wang did not specify the nature of the support ICBC would provide, the bank's stance indicates its commitment to assisting in measures aimed at addressing challenges in the property sector.

ICBC, along with Bank of Communications Co Ltd, reported minimal profit growth in 2023 amidst a slowdown in economic expansion. Agricultural Bank of China Ltd (AgBank), on the other hand, recorded a modest 3.9 percent increase in net profit for the same period.

The volatility in China's property market, triggered by policies aimed at curbing developer debt, has led to defaults and setbacks at several property firms, impacting the sector's lenders and raising concerns about potential differential support between state-owned and privately-owned property companies.

In response, Chinese regulators are urging banks to expedite loan approvals for financially strained private developers, despite some hesitancy among lenders to increase exposure to the struggling sector.

ICBC emphasized its commitment to treating property firms equally, regardless of ownership structure, signaling a non-discriminatory approach to support. Similarly, Bank of Communications Co Ltd (BoCom) acknowledged the challenges posed by the property sector, highlighting the need for intensified risk management in property-related business to safeguard asset quality.