China’s economy is expected to shrink in the first quarter for the first time since 1976. Photo: Reuters

Coronavirus: China to open US$1.5 trillion distressed debt market as it braces for bad loan blowout

  • China’s distressed debt market could see an increase of sour loans this year as the economic impact of the coronavirus hits small businesses and the property sector
  • PwC estimates that China’s banks and asset management companies hold about US$1.5 trillion of bad debt and other distressed assets, up from US$1.4 trillion in 2018
Topic |   Coronavirus pandemic
China’s economy is expected to shrink in the first quarter for the first time since 1976. Photo: Reuters
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