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发帖数: 3150 | 1 China's shadow banking system is out of control and under mounting stress as
borrowers struggle to roll over short-term debts, Fitch Ratings has warned.
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Fitch warned that wealth products worth $2 trillion of lending are in
reality a "hidden second balance sheet" for banks, allowing them to
circumvent loan curbs and dodge efforts by regulators to halt the excesses.
By Ambrose Evans-Pritchard
The agency said the scale of credit was so extreme that the country would
find it very hard to grow its way out of the excesses as in past episodes,
implying tougher times ahead.
"The credit-driven growth model is clearly falling apart. This could feed
into a massive over-capacity problem, and potentially into a Japanese-style
deflation," said Charlene Chu, the agency's senior director in Beijing.
"There is no transparency in the shadow banking system, and systemic risk is
rising. We have no idea who the borrowers are, who the lenders are, and
what the quality of assets is, and this undermines signalling," she told The
Daily Telegraph.
While the non-performing loan rate of the banks may look benign at just 1pc,
this has become irrelevant as trusts, wealth-management funds, offshore
vehicles and other forms of irregular lending make up over half of all new
credit. "It means nothing if you can off-load any bad asset you want. A lot
of the banking exposure to property is not booked as property," she said.
Concerns are rising after a string of upsets in Quingdao, Ordos, Jilin and
elsewhere, in so-called trust products, a $1.4 trillion ( |
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