Rising interest margins to aid bank profits

BEIJING - Despite concerns over the downside risks of the government clampdown on the property market, analysts said Chinese lenders are likely to maintain stable profits this year on growing interest margins.

The government unveiled a series of measures this month to curb property prices, triggering concerns that the downturn effect will dampen the property market and eventually spill over to the banks and the overall economy.

Many Chinese banks reported or are expected to report a profit surge in the first quarter this year, buoyed by brisk lending to the property sector. Mortgage loans and lending to real estate developers accounted for nearly one-third of the total new loans issued by Chinese lenders during the period.