Loan woes: China’s troubled property market hits banks



Spate of profit warnings reveals extent of risk to broader financial system.

Troubling news continues to flow from China’s property market as a series of mainland developers report sharp slowdowns and even reversals from last year’s robust first-half profits before the current crisis unfolded. As the government struggles to shore up the sector, the pain is starting to reveal itself in the banks’ loan books, with potential implications for the health of the overall financial system.