The startling growth of credit in China is an indicator of serious asset-quality problems in the country’s financial sector, says Charlene Chu of Autonomous Research.
Tag : chinese banks
China’s banking sector will have a higher non-performing loan ratio in coming years, but good profitability, strong liquidity and adequate capitalisation will enable the major lenders to absorb unexpected credit losses.
As new listings continue to stutter in China and Hong Kong, there are sectors with strong growth prospects, says Gigi Chan, Asia-Pacific equity fund manager at Threadneedle Investments.