LENDING & CREDIT | Staff Reporter, China

Why big Chinese banks might be 'secretly happy' with deleveraging

Higher borrowing costs seem to be a boon for them.

According to Bloomberg, as China ramps up its quest to conquer leverage, the banking sector is finding out that being a big fish pays -- literally.

While smaller lenders grapple with soaring money-market rates -- some are said to have defaulted amid the tight liquidity -- their larger counterparts are poised for a windfall. Bigger banks are benefiting from higher borrowing costs given their status as net lenders in the interbank market, a situation that has Citigroup Inc. to Morgan Stanley favoring their shares. Large bank stocks have already returned double that of their smaller brethren so far this year.

Read the full story here.

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.