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China debt crunch

Chinese banks' offshore debt shows impact of Evergrande crisis

Biggest drop in short-term borrowing since March 2016 reveals cash crunch

Evergrande, which missed bond coupon payments last month, faces a new wave of debt deadlines in the coming days.   © Reuters

BEIJING -- Offshore debt at Chinese banks took the biggest drop in five and a half years last fall, in what capital market watchers say points to a credit crunch triggered by cash-strapped property developer China Evergrande Group's brush with default.

Outstanding foreign debt at commercial banks and other depository corporations stood at $1.18 trillion at the end of September, down 6% from the end of June, according to quarterly data from China's State Administration of Foreign Exchange.

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