Bulletin: China Bohai Bank Is On Track To Derisk

HONG KONG (S&P Global Ratings) Nov. 12, 2024--China Bohai Bank Co. Ltd. is continuing on its derisking drive. The bank sold Chinese renminbi (RMB) 28.97 billion worth of assets on Nov. 8, 2024. This follows the sale of RMB5.67 billion assets in March this year. The assets were sold at a 30% discount to their face price. Tianjin Jinrong Asset Management Co., a Tianjin state-owned enterprise, was the buyer. The two sales were equivalent to 3.7% of the bank's gross loans as of end-June 2024. China Bohai Bank's (BBB-/Stable/A-3) other initiatives in this regard include reducing its asset expansion and cleaning up high-risk holdings, such as internet loans. The Tianjin-based joint stock bank has also tightened its internal control, including

...November 11, 2024 HONG KONG (S&P Global Ratings) Nov. 12, 2024--China Bohai Bank Co. Ltd. is continuing on its derisking drive. The bank sold Chinese renminbi (RMB) 28.97 billion worth of assets on Nov. 8, 2024. This follows the sale of RMB5.67 billion assets in March this year. The assets were sold at a 30% discount to their face price. Tianjin Jinrong Asset Management Co., a Tianjin state-owned enterprise, was the buyer. The two sales were equivalent to 3.7% of the bank's gross loans as of end-June 2024. China Bohai Bank's (###-/Stable/A-3) other initiatives in this regard include reducing its asset expansion and cleaning up high-risk holdings, such as internet loans. The Tianjin-based joint stock bank has also tightened its internal control, including the credit approval process and risk oversight. All these measures will help China Bohai Bank reduce asset quality risk. We forecast the bank's nonperforming assets (NPA) will decline to about 6.3% of total loans in 2026, narrowing the...

Bulletin