Bloomberg (June 26)
2019/ 06/ 28 by jd in Global News
“China is losing the war against shadow banking. Look beneath the headline numbers and you’ll see that activity is picking up, a sign of the economy’s overreliance on this opaque funding channel.” In the first quarter, “financing using trust assets climbed 4.4%” and the “proportion prone to default and repayment risks climbed to a record high of 90% from a year earlier.” Despite the talk of deleveraging, “what’s clear is that China needs its shadow banks now more than ever.”
Tags: China, Default, Deleveraging, Opaque funding, Overreliance, Repayment risks, Shadow banking, Trust assets
