State-owned banks in China outperform joint-stock banks in profitability and stability.
The profitability of China's commercial banks was analyzed using data from 16 listed banks in 2019. By using factor analysis, researchers identified key factors affecting bank profitability. State-owned banks showed better profitability and stability compared to joint-stock banks, which had higher non-performing loan ratios and lower capital adequacy ratios. This suggests that banks should focus on improving risk control while increasing profits.