It was once hailed as the future of Chinese banking, a privately run lender that would mint money by outmaneuvering its state-owned rivals.
An ill-fated push into property lending has instead turned China Minsheng Banking Corp. into one of the biggest casualties of the real estate debt crisis that’s roiling Asia’s largest economy.
Battered by mounting losses on loans to developers including China Evergrande Group, Minsheng’s stock tumbled 31% in the 12 months through last week — the worst performance in the 155-member Bloomberg World Banks Index. Hedge funds and other short sellers are more bearish on the lender than any of its global peers.
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