HONG KONG (Reuters) -- China Bohai Bank said on Monday it is looking to sell 29 billion yuan ($3.99 billion) worth of nonperforming loans as the faltering Chinese economy and deepening property sector problems pressure lenders to dispose of bad assets.
The bank, 16.2% owned by British lender Standard Chartered, expects a financial hit of 3.9 billion yuan from the sale, the bank said in a statement on the Hong Kong Stock Exchange.
It added it should receive no less than 17.7 billion yuan for the transaction.
Bohai Bank is looking to get large soured loans off its balance sheet and said there are six potential buyers, including China Orient Asset Management and China Cinda Asset Management.
China's economy grew much slower than expected in the second quarter, with the worsening property market continuing to weigh on smaller banks that are more vulnerable to private-sector loans.
Foreign banks are feeling the pinch of Chinese lenders' deteriorating businesses.
StanChart had taken a total of $850 million in writedowns in the last few quarters on its stake in Bohai Bank and said in May it remained cautious about the sector as residential sales volumes continue to decline.
The Hong Kong-listed lender's share price has shrunk 80% since its listing in 2020.
The net profit of the Tianjin-based Chinese lender in 2023 is down 17% from a year ago, its annual report shows.
