The NPL ratios of China’s key banks all hover at about the same level – now around 1.7 per cent of loans. But recent research estimates that the real ratio could be as high as 20 per cent, implying total NPLs of 19 trillion yuan (US$3 trillion). Photo: Reuters
Ted Osborn
Opinion

Opinion

Macroscope by Ted Osborn

Pressure on China’s banks to report bad debt is good news for foreign investors 

Ted Osborn says China’s banking regulators are making it harder for banks to hide their NPLs. As a result, more bad debt portfolios will be sold to asset management companies and, ultimately, foreign investors

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The NPL ratios of China’s key banks all hover at about the same level – now around 1.7 per cent of loans. But recent research estimates that the real ratio could be as high as 20 per cent, implying total NPLs of 19 trillion yuan (US$3 trillion). Photo: Reuters
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