China's big banks post Q3 profit gains, squeeze on net interest margins

Profit Increases Among Major Chinese Banks: China's largest banks reported third-quarter profit increases, primarily due to reduced provisions, despite facing challenges like shrinking profits and weak loan demand amid a sluggish economic recovery and property sector crisis.

Pressure on Net Interest Margins: Several banks experienced a squeeze in net interest margins (NIM), which is expected to continue as government policies aimed at supporting the economy may not sufficiently revive credit demand, leading to ongoing capital raising needs for these lenders.