Shares in Chinese banks plunged after Goldman Sachs downgraded some ratings due to high local government debt.
According to a July 11 Bloomberg report, shares in China’s banking sector are on the cusp of historically low valuations. Bloomberg Intelligence’s index of Chinese bank stocks is down 14 percent from this year’s high in May, wiping out $77 billion in market value.
Goldman Sachs’ July 4 analysis of 12 listed Chinese banks had “sell” ratings on five, “neutral” ratings on three, and “buy” ratings on four.
The five Chinese banks with sell ratings are the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of Communications, Industrial Bank, and Huaxia Bank….