China's stimulus impacts major banks as earnings season approaches

China's recent efforts to stimulate the economy are expected to have an impact on the third-quarter earnings of major Chinese banks, such as Industrial & Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of China.

Analysts will be closely watching the banks' long-term outlook following the recent reductions in benchmark lending and deposit rates, which were implemented as part of central bank easing efforts. The banking sector is currently facing challenges, with net interest margins reaching record-low levels by the end of June, putting pressure on profitability.

As these banks prepare to report their earnings, investors and market analysts will closely monitor the effects of the government's economic policies and interest rate adjustments.

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