According to the official data, banks in Shenzhen granted 315.8 billion yuan (US$44.7 billion) worth of new yuan loans in the first quarter of 2020, an increase of 71.8 billion yuan from the same period last year. Photo: Edward Wong
According to the official data, banks in Shenzhen granted 315.8 billion yuan (US$44.7 billion) worth of new yuan loans in the first quarter of 2020, an increase of 71.8 billion yuan from the same period last year. Photo: Edward Wong

Coronavirus: China’s bank loans intended to help small businesses are actually fanning Shenzhen’s property bubble

  • Beijing has promised help to small and medium-sized businesses amid the outbreak of Covid-19, with additional liquidity released into the banking system
  • But the loans are in some cases being obtained by dummy shell corporations and used illegally for real estate investments

According to the official data, banks in Shenzhen granted 315.8 billion yuan (US$44.7 billion) worth of new yuan loans in the first quarter of 2020, an increase of 71.8 billion yuan from the same period last year. Photo: Edward Wong
According to the official data, banks in Shenzhen granted 315.8 billion yuan (US$44.7 billion) worth of new yuan loans in the first quarter of 2020, an increase of 71.8 billion yuan from the same period last year. Photo: Edward Wong
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