China bank stocks collapse to pre-crisis levels as fears mount

China's tightening efforts in lending are causing stock market panic, bringing down bank valuations close to recession levels.

With banks expected to scale back lending to approximately $1.1 trillion this year, share prices are seeing alarming downfall. According to The Business Insider, on average Chinese banks are trading 19 percent below the mean price/book.

CIti CFA Simon Ho said, "We believe we are coming closer to the lower end of the range as prices continue to fall."

Meanwhile Bank of China is considering offering bonds worth $5.8bln to replenish capital following last year's loan surge.