This report does not constitute a rating action. A stabilization in China's property market is good news for lenders. Banks that cater to larger and wealthier cities will benefit the most. The coast is not completely clear, however. S&P Global Ratings anticipates a stabilization in the property market, rather than a roaring recovery (see " China Property Watch: Rebooting An Economic Engine ," published on RatingsDirect on May 11, 2025). We see the potential for stabilization to improve consumer confidence, spreading economic benefits. We also still see uncertainties, including the potential for trade tensions between China and the U.S. to derail the current momentum. The downside risks are larger for regional banks that are more exposed to smaller cities, whose
