China Construction Bank reports $14.5 billion in first-half profit

China Construction Bank reported record first-half profit of $14.5 billion as loan demand rose in the second-largest growth economy of the world.

However, the bank's Hong Kong-listed shares fell about a quarter of their value this year as concerns mounted over Chinese banks' earnings sustainability and asset quality.

According to analysts, fee income might be affected by the tougher regulations proposed on the sale of wealth management products. They add the market was also  concerned about what level the credit quality may deteriorate to.

Lenders had been asked by Chinese regulator to increase capital buffers and accelerate loan collection schedules for local government debt even as concerns mounted that a record $2.7 trillion two-year credit boom started in 2009 would end up in soaring defaults if the economy faltered.

The Chinese government was also tightening oversight of wealth-management services in addition to banning practices such as bank's buying each other's products beat regulations over limits on deposit rates and loan quotas. 

Shares of Construction Bank were down around 1 per cent to HK$5.22 with a 0.9 per cent gain in the benchmark Hang Seng Index. (HSI) The stock declined 25 per cent this year.