A women walks past a bank window displaying the security markers on the 100 yuan note, in Beijing, in February 2019. Photo: AP A women walks past a bank window displaying the security markers on the 100 yuan note, in Beijing, in February 2019. Photo: AP
A women walks past a bank window displaying the security markers on the 100 yuan note, in Beijing, in February 2019. Photo: AP
Joe Zhang
Opinion

Opinion

The View by Joe Zhang

Why China’s subprime credit crisis would benefit from a debt amnesty

  • The recently announced lower interest rate ceiling on non-bank credit will force lenders to vet borrowers more carefully
  • In the longer term, a debt amnesty could provide a clean slate upon which China could construct Western-style credit infrastructure

Joe Zhang
Joe Zhang

Updated: 5:45am, 3 Sep, 2020

Why you can trust SCMP
A women walks past a bank window displaying the security markers on the 100 yuan note, in Beijing, in February 2019. Photo: AP A women walks past a bank window displaying the security markers on the 100 yuan note, in Beijing, in February 2019. Photo: AP
A women walks past a bank window displaying the security markers on the 100 yuan note, in Beijing, in February 2019. Photo: AP
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Joe Zhang

Joe Zhang

Joe Zhang is vice-chairman of YX Asset Recovery, the biggest consumer debt restructuring agency with 13,000 employees, and author of Inside China’s Shadow Banking: The Next Subprime Crisis?