Chart of the Week: Chinese banks' NIMs to expand in the coming quarters

The big state-owned banks' NIMs stood at 2.1% in Q3.

BMI Research said the net interest margins (NIM) of Chinese banks are to expand slightly over the coming quarters. The average net interest margins of the big state-owned and joint stock Chinese banks came in at 2.1% and 2.2%, respectively, in Q317, rising slightly from 2.0% and 1.9% in the previous quarter, according to data from Wind.

"We expect lenders' NIM to benefit from rising market-based lending rates amid expectations that Chinese policymakers are going to rein in overall leverage growth through broadly tighter monetary conditions," said BMI Research.