They deposit about two-thirds of these savings in China's four big state-owned banks, which lend about two-thirds of these deposits to state-run firms.
Property developers fell on mainland exchanged as expectations faded that accommodative measures for selected property loans from China's four big state-owned banks may boost demand.
The four big state-owned banks that dominate the system direct four-fifths of their lending to state-owned enterprises which destroy value more often than they create it.
The ratio of non-performing loans at north-eastern bank branches is the highest in the country, which is itself so overwhelmed with bad debts that the big state-owned banks need regular injections of capital in order to avoid insolvency.
The retail offer for the last of the big state-owned commercial banks was six times oversubscribed.
Private businesses will likely enjoy better access to credit from the big state-owned commercial banks, which have long been biased toward money-losing public enterprises.
Perhaps more important are the local bad debts of the big four state-owned banks at least three of which are, by rights, insolvent several times over.
On December 10th, Wang Xuebing, the former head of Bank of China in Hong Kong (the listed arm of one of the mainland's big four state-owned banks) was jailed for 12 years for graft.
The large state-owned banks have only been comfortable lending to other big state-owned and have been reluctant to provide loans to private SMEs.
First, the big banks are state-owned and their chairmen appointed by the government, so they tend to follow Beijing's orders.
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And the programme has now slowed down as it reaches the banks and insurance companies and big state-owned lossmakers.
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Bank loans remain tough to get for smaller firms, as Chinese banks tend to focus on the big state-owned clients.
China banks were down around 20 percent in the first half of the year, thanks in part to concerns over non-performing loans on the books of the big state owned banks lending to real estate builders.
State-owned banks and enterprises also account for a big portion of bond issuers.
He told the Guardian that handing out big awards backed by state guarantees was "unacceptable", even for banks that were not part-owned by the taxpayer.
While their overall overseas footprint is still small compared with that of big international oil companies, these companies are expanding with access to cheap credit through China's state-owned banks.
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