STOCKS | CSC Financial Co., Ltd. Sees More Room for Bank Real Estate Lending

According to Jin10, CSC Financial Co., Ltd. said the new real estate policy introduced by five ministries, including China's Ministry of Housing and Urban-Rural Development, on August 28, 2026, should help align property credit rules with the sector's shift to a new model of high-quality development. The firm said banks' lending to real estate has room to expand, and asset quality is expected to improve with high certainty. It also said bank interim results showed a relatively optimistic net interest margin, stable asset quality, generally upbeat revenue with some divergence, and a continued recovery in profit growth, while some banks raised dividend payout ratios to boost shareholder returns and support long-term investors. Looking ahead to the third quarter, it expects net interest margins and asset quality to remain stable, with a positive full-year earnings trend and continued support from broader macro narratives.