China's big banks flag asset pressure due to virus

BEIJING/SHANGHAI: China's largest state banks said the impact of restrictions on movement imposed to slow the spread of the coronavirus could pull down asset quality as borrowers struggle to repay loans, though they are likely big enough to weather any fallout.

The comments come as four of the country's largest state-backed lenders posted estimate-beating fourth-quarter profit - but they bode ill for smaller lenders, who have less capital reserves and can call on fewer state borrowers.