May
31
With Massive Defaults Looming, Chinese Banks Aren’t Keen to Loan Local Firms Cash
By
Workers eat in a cafeteria during lunch hour at a plant in Wuhan, China. Photographer: Tomohiro Ohsumi/Bloomberg
Just as Premier Li Keqiang steps up efforts to revive China’s loan-backed bond market to spur the economy, banks are balking.
Chinese lenders have cut offerings of asset-backed securities 45 percent to 43.4 billion yuan ($7 billion) this year, after a 15-fold jump in 2014, Bloomberg-compiled data show. They have reduced loans for four straight months, even as policy makers expanded the securitization quota by 500 billion yuan to free up space on their balance sheets for fresh lending…
With Massive Defaults Looming, Chinese Banks Aren’t Keen to Loan Local Firms Cash
