There is a common theme evident for those who wish to see reality: Pushing more debt onto heavily indebted borrowers = a bad debt epidemic, not economic growth. This is worldwide.
Chinese banks’ bad loans are at least nine times bigger than official numbers indicate, an “epidemic” that points to potential losses of more than $1 trillion, according to an assessment by brokerage CLSA Ltd.
Nonperforming loans stood at 15 percent to 19 percent of outstanding credit last year, Francis Cheung, the firm’s head of China and Hong Kong strategy, said in Hong Kong on Friday. That compares with the official 1.67 percent. Here is a direct video link.
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