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China Banks See Bad Property Loans Piling Up – Nikkei

Banks have started to dial back their exposure to the ailing sector with total real estate loans rising just 3.3% this year while overall lending rose 7.9%


Country Garden's landmark East China Center Building
Country Garden's landmark East China Center Building in Zhenjiang, Jiangsu province. Photo: AFP

 

Chinese banks have seen a 27% surge in non-performing loans (NPLs) to the country’s ailing property sector since the end of last year, according to analysis by Nikkei Asia.

Real estate sector NPLs now make up 12.3% of the banks’ total bad loans, up 2% points this year so far and of the of the 46 mainland banks surveyed, the report went on, 22 saw their NPL share to the sector rise by double-digits in the last eight months.

Full story: Nikkei Asia

 

  • By Sean O’Meara

 

Read more:

China Property Bonds Being Shunned Over Default Danger

China Banks, Officials Resisting Beijing’s Property Rescue Call

China Property Service Groups Hurt by Parents’ Debt Woes

Asia-Focused Funds Snared by Deepening China Property Crisis

 

 

Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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