The bigger problem, and the reason why Chinese bank stocks have tumbled ever since the Baoshang Bank bailout, is that investors (and depositors) were worried that now that Beijing has started down the path of bank bailouts, it was unclear where it would stop.
And so, fast forward to this week when overnight, the SCMP reported that China’s sovereign wealth fund has taken over Heng Feng Bank – the bank at the very top of the list shown above, one with roughly $200 billion in assets – a troubled lender linked to fugitive financier Xiao Jianhua, in the third case in as many months of the state exerting its grip over wayward financial institutions.
https://www.zerohedge.com/news/2019-08-09/bailout-3-chinese-bank-200-billion-assets-nationalized
