China banks shy away from infrastructure loans in tactic shift

Faced with shrinking profit margins, some Chinese banks are turning away from funding big infrastructure projects to focus on smaller clients who they can charge higher interest rates, bankers say, a fundamental shift in business strategy.

Funding big state-owned firms and big government infrastructure projects is the traditional lifeblood of China’s government-controlled banks, whose profits enjoy additional protection from the country’s managed interest rate system.

via Business feed http://www.scmp.com/business/banking-finance/article/1048382/china-banks-shy-away-infrastructure-loans-tactic-shift